The trend among large banks towards greater acceptance of cryptocurrencies seems irreversible. And it is that, if already Goldman Sachs, one of the main critics of the crypto world, relaunched its crypto derivatives trading service. Now it is the turn of another of the large US banks, JP Morgan, which begins to study the crypto market, foreseeing an increase in the demand for financial products related to it.
Until recently it was relatively easy to ignore the crypto market. Even though Bitcoin had proven since the big bull rally of 2017, to be one of the best performing financial assets in the world. The pool of investors and the market capitalization of cryptocurrencies was so small that traditional financial institutions preferred not to get involved in this sector.
However, things are beginning to change. Thus, on the one hand, Goldman Sachs, a bank that only in the middle of last year classified Bitcoin as a worthless speculative asset. He has had to backtrack and reactivate his crypto futures trading service. After the demand for these products began to grow among its customers.
A pressure that JP Morgan is also beginning to feel through its employees. After a meeting with the bank’s CEO, the bank’s traders requested the inclusion of products related to the crypto market in their activities. To which we must now add a report carried out by the bank itself for its largest clients.
JP Morgan studies cryptocurrencies
Thus, the members of JP Morgan Private Bank, the list of bank clients with more than 10 million dollars in their accounts. They received in February of this year a report prepared by the institution, which analyzes the risks and opportunities that currently exist in investing in cryptocurrencies.
In the report, the bank studies the value of Bitcoin using three different methods. First of all, the number of users participating in your community. Second, the current value of gold related to the BTC offering. And finally, the global monetary liquidity of money. With this, three possible prices for the cryptocurrency were established, which suggest a possibility of growth in its price in the crypto market.
In this way, and although the report itself points to the volatility of the price of Bitcoin as one of the great problems of the cryptocurrency. JP Morgan appears to be bracing for an increase in demand for cryptocurrency-related products from its large customers. Ultimately, a positive development for the crypto asset market.