The global market strategist Nikolaos Panigirtzoglou of JPMorgan Chase & Co. is in our bitcoin news today for his analysis of crypto market and the behavior of the investors.
The JPMorgan team in which Nikolaos was a member wrote in a research note that the participation by financial institutions in bitcoin trading appears to be fading.
Panigirtzoglou thinks that the interest in bitcoin futures has plummeted but so does the trading volumes. According to one of the notes, other cryptocurrencies still suffer during the current correction phase.
JPMorgan believes that the Crypto Winter caused the prices to decline even further which miners seem to be having a huge problem with because it is now extremely inefficient to mine so they decided to turn their mining rigs off.
In the meantime, the founder of crypto investment fund Digital Currency Group Barry Silbert explained:
“You have to separate the investment decision that a miner is making from the operating cost for them to mine the bitcoin.”
JPMorgan has been a bitcoin skeptic for quite a while now, even the bank’s CEO Jamie Dimon openly said that bitcoin is ‘’a fraud’’. Back in October Dimon claimed that blockchain is a legit innovation but that he ‘’doesn’t give a sh*t about bitcoin’’.
Dimon even swore that he would fire any employee in JPMorgan that will be involved in bitcoin trading activities. Despite Dimon, other investment bankers have brighter perspectives.
Allianz Chief Economist Mohamed El-Erian says that he believes Bitcoin will survive the current sell-off and that it is here to stay but doesn’t believe that cryptocurrencies will replace fiat money in the near future.
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