JPMorgan hasn’t had its fill of putting down bitcoin just yet.
JPMorgan Works in Crypto, but Doesn’t Seem to Like It
It’s strange in the sense that JPMorgan has clearly initiated a run in the crypto market with the development of its new JPM Coin. At the same time, the banking giant can’t seem to find common ground with the industry’s big daddy bitcoin.
In a recent statement, the financial enterprise issued a warning to all customers investing in bitcoin and related forms of crypto that the behavior being witnessed by most major coins “mirrors” the “boom-bust” trend that was originally witnessed between 2017 and 2018. As we all remember, 2017 was marked by consistent (and grand) price spikes for bitcoin and other forms of mainstream crypto, with bitcoin reaching its all-time high of nearly $20,000 in December of 2017.
Sadly, 2018 did not bring the same level of joy and comfort, but rather delivered huge losses to most crypto traders. By January of that year, bitcoin had dropped to $16,000. It later fell to $12,000, then $11,000, and finished out late February at a mere $9,000, ultimately losing more than half of its previous December value. By November 2018, however, bitcoin fell to $3,500 following a controversial bitcoin cash hard fork that pitted many industry leaders against each other. Several months went by of virtually no activity, and many thought bitcoins were doomed for good.
In April of this year, however, bitcoin began experiencing several price spikes. It ultimately rose beyond the $5,000 mark, and at press time, is trading for about $7,800. It has more than doubled its price over the past six months, marking a huge turning point to the once dismally-performing cryptocurrency, but it appears not everyone is happy.
In its statement, JPMorgan explains:
Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time, this divergence was resolved mostly by a reduction in actual prices… Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values exceeding current prices.
Is It Fair to Take on a Gloom and Doom Attitude So Quickly?
It can be suggested that JPMorgan’s fear is premature. We’re not even at the halfway point of 2019, and already there’s concern that 2017 is repeating itself. Second, the price spikes bitcoin has incurred this year are occurring at a much steadier pace than they were in 2017, which was likely the product of market manipulation. While spikes are occurring regularly, they are shorter and cover less ground than they did in 2017, so to assume that 2017 is happening all over again probably isn’t entirely accurate.
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Crypto payment solutions are gaining traction worldwide
Tuesday November 12, 2019
For many years, crypto enthusiasts and financial experts alike have been advocating that Bitcoin and other cryptocurrencies will only reach mainstream appeal when people are able to use them in daily life. Now, with more and more online and brick-and-mortar-stores accepting Bitcoin, it seems that this scenario is closer to coming true. Cryptocurrency awareness is […]
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