JP Morgan says large firms will not follow Tesla's bitcoin move

[Hydrogen]

While the crypto community expects more large firms to emulate Tesla’s Bitcoin purchase, JPMorgan’s strategists don't think it will happen.

https://cointelegraph.com/news/don-t-expect-large-firms-to-follow-tesla-s-bitcoin-move-jpmorgan-says

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Interesting development:

Twitter looking into Bitcoin payments for employees

https://www.investing.com/news/cryptocurrency-news/twitter-looking-into-bitcoin-payments-for-employees-says-cfo-2415289

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Does anyone get the feeling JP Morgan is inaccurate here.

The natural scenario appears to be one where most flock to BTC and crypto in the near future. If inflation rises. Prices trend upwards. And concerns about lockdowns coupled with stimulus spending mount. Employees and the private sector will naturally embrace previous metals and BTC in an effort to insulate themselves from negative effects associated with fiat devaluation, inflation and stimulus spending.

I remember a time around 10 years ago when many europeans thought the EU would fail and euro would devalue due to concerns about greece. Many in europe bought big screen TVs and other items, to retain the value of their money, expecting the euro to crash.

I would be interested to know why JP Morgan says history would not repeat itself here.

[jackg]

Maybe they don't want it to? Maybe they thought they'd be able to buy more btc before the price goes up. Perhaps they have a loaded short on btc waiting to be fulfilled from the current price rise...

Analysts of cryptocurrency, tech stocks and further fields aren't going to be accurate either. There also might be a factoring in of the 80% drop that may come again some time potentially THIS year. If you got paid 0.01BTC for a month's work ($3000 eg) and then the value dropped over the weekend to $60k/coin leaving you with $600 you might be hugely out of pocket...

[20kevin20]

JP Morgan is a bank, isn't it?

I can't even expect them to support BTC unless they find a way to be in advantage themselves. Since MicroStrategy and Tesla have invested that much into BTC, I really expect a strong domino effect going through most of the large companies.

As time passes, Musk's and MicroStrategy's value will most likely rise at some point to an ATH specifically due to their recent actions of purchasing BTC. Other large companies will not be left alone in the course and all they have to do is just see the price evolution of 2009-2021 to realize that they're gonna be left behind if large corporations invest in BTC while they don't.

[error08]

JP Morgan predicts bitcoin price could rise to $146k in the long term as institutional investors continue to increase their portfolios with the cryptocurrency at the expense of gold, stated in the news on January 5th, later in their next statement when bitcoin price fall to $30k; analysts at the financial JP Morgan Chase doubt that the electronic currency can be traded above $ 40,000 again. Seems their words and predictions contradict each other, not to mention their act to possibly buy bitcoin.
Grayscale, Microstrategy, and Tesla have been investing in bitcoin, how could it does not trigger others to follow their path? it just the early days of 2021, bitcoin still has a lot of room to grow this year upon inflation and depreciation of fiat currencies.

read more

[zanezane]

JP Morgan is a bank, isn't it?

I can't even expect them to support BTC unless they find a way to be in advantage themselves. Since MicroStrategy and Tesla have invested that much into BTC, I really expect a strong domino effect going through most of the large companies.

As time passes, Musk's and MicroStrategy's value will most likely rise at some point to an ATH specifically due to their recent actions of purchasing BTC. Other large companies will not be left alone in the course and all they have to do is just see the price evolution of 2009-2021 to realize that they're gonna be left behind if large corporations invest in BTC while they don't.

In a way, JP Morgan is right, if large firms were to follow now, the prices that they are going to pay is going to be big but I don't that it is enough excuse because they can see the potential of increase of bitcoin in the past year and I think that this will be discussed on the board meetings because the latecomers are going to be crying their hearts out because they will be buying at such a large price that they are not going to profit a lot. We just have to see what happens next because we can't trust bankers.

[bittraffic]

The fud now had to start from the big institutions too to balance Elon's move. ITs however not very convincing because JP morgan is also BTC investor.
If the large firms are not going to buy now, they are going to be at loss again because Elon might just pump it again for another $1.5B. It' will be very difficult to stop cryptocurrency when big names come out already.

[SaShiRaJaVu]

I would be interested to know why JP Morgan says history would not repeat itself here.

These are nothing but their opinions, in 2017 they were calling bitcoin a fraud investment and a bubble and on the back side they started investing in it. The opinions and claims they make has nothing to do with the truth and hence they should be ignore as well.

JP Morgan cannot even say the truth about their investment and how can they predict what other companies will be investing in the future.

[Sithara007]

I went through the news yesterday when it first appeared in Coindesk. Here is what I find funny:

Even if Bitcoin makes up 1% of total allocations, it “would cause a big increase in the volatility of the overall portfolio,” potentially driving the portfolio’s volatility up to 8% due to Bitcoin’s 80% annualized volatility, the strategists said.

The last time Bitcoin had a volatility of 80% was in 2018, and with the institutions mopping up more and more coins, we are unlikely to see that sort of volatility anytime in the future. And even if there is an annual volatility of 80%, what is wrong with that? In terms of the total value of the portfolio, it means that the net worth will fluctuate between 99.2% and 100.8%. Is this such a big difference? Nikolaos Panigirtzoglou and other JP Morgan lapdogs need to stop their panic spreading strategy, because no one will take them serious anymore.

[sunsilk]

Is this the usual strategy of JP Morgan when a known institution have bought a lot and they're missing the time to purchase just as Tesla and Microstrategy did? and don't forget about Grayscale.

They think the game is still the same as before whenever they publish negative words towards the bitcoin community, here goes the panic sellers that will plunge the market to make the prices cheap for them. It could still be the same but impact isn't great as before.

[Vishnu.Reang]

JP Morgan's stance is not very surprising. Their officials have taken a stance against cryptocurrency for a long time. But the good thing is that cryptocurrency users never take them seriously and as a result we are in good profit right now. PayPal also used to be hostile to Bitcoins a few years back. But now look where are they right now. I am quite confident that the same will happen to JP Morgan as well.

[hatshepsut93]

JP Morgan is a bank, isn't it?

I can't even expect them to support BTC unless they find a way to be in advantage themselves. Since MicroStrategy and Tesla have invested that much into BTC, I really expect a strong domino effect going through most of the large companies.

JP Morgan said Bitcoin will reach $146,000, then they said it will never rise above $40,000 again, now they say this. There's a lot of analysts working at JP Morgan, so it's not that surprising that there's so many different opinions within this company.

Them being a bank doesn't mean they should be against Bitcoin, if Visa and PayPal and Mastercard are pro crypto, why banks shouldn't?

[keyscore44]

Once, I tried to follow the announcements given by JP Morgan, because it seemed to me that such a huge institution must have great knowledge and experience - after all, it would not have become so huge if it were not.
Over time, however, more and more often I started to see messages completely contrary to reality, which made me think that this huge institution had become so huge not thanks to knowledge and experience, but thanks to information manipulation.
Therefore, when I see their message now - such as this one, for example - I am more convinced that the truth is quite the opposite.

[NeuroticFish]

Isn't this the same JP Morgan that pays "Bitcoin is a fraud" and "I regret making that comment" Jamie Dimon?
They are far from understanding Bitcoin, hence it doesn't matter what they say, since it's probably incorrect.

Although it would have been super funny to see them turning from "Bitcoin is a fraud" to actually investing into Bitcoin, we can't actually expect that from such dinosaurs.

[Bttzed03]

I went through the news yesterday when it first appeared in Coindesk. Here is what I find funny:

Even if Bitcoin makes up 1% of total allocations, it “would cause a big increase in the volatility of the overall portfolio,” potentially driving the portfolio’s volatility up to 8% due to Bitcoin’s 80% annualized volatility, the strategists said.

The last time Bitcoin had a volatility of 80% was in 2018, and with the institutions mopping up more and more coins, we are unlikely to see that sort of volatility anytime in the future. And even if there is an annual volatility of 80%, what is wrong with that? In terms of the total value of the portfolio, it means that the net worth will fluctuate between 99.2% and 100.8%. Is this such a big difference? Nikolaos Panigirtzoglou and other JP Morgan lapdogs need to stop their panic spreading strategy, because no one will take them serious anymore.

Coindesk article https://www.coindesk.com/teslas-bitcoin-buy-may-not-trigger-wave-of-corporate-demand-says-jpmorgan (I refuse to read articles from Cointelegraph after their erroneous bitcoin double spend article)

If you are in the same position of that JP Morgan analysts where you are also taking care of other people's investment, you'd also become cautious of the price volatility. Yes there are more institutional money coming in but that doesn't fix the volatility of BTC.

I think it's only natural for these big investors not to fall for FOMO after Elon's announcement. They would probably wait if there is a strong demand to support $40K level.

[el kaka22]

I guess I can't really refute what JP Morgan says because I do not have the power to see the future, maybe all the major companies will get in or maybe none of them will, I really do not know whats going to happen. However I also think, even with all those experts and analysts, they do not know who will get in or not neither, these are personal preferences (well company preferences) and they may not say it out loud but they might be thinking about it or talking about it or trying to find how to do it etc etc.

Moreover, I do not like to talk in absolutes, only siths deal in absolutes, I think this is going to be more like some majors go in and many don't and just spread it around, nothing major for us because we already have wall street on our side now, but still a few more will probably come while many many more will come at a later date.

[Smartprofit]

JP Morgan tries to wishful thinking.  Why is he saying this? 

The main assumption is that he wants to lower the price of bitcoins and buy the first cryptocurrency as cheaply as possible.  In addition, many large corporations (especially banking structures) are wary of Bitcoin.  The main danger (in their opinion) is that Bitcoin will destroy the modern financial system.  And it is true. 

In my opinion, the modern financial system can no longer work as efficiently as before.

[oHnK]

If you look at the current economic development controlled by the Central Bank, it is very possible that inflation will be very severe in the future. So much fiat money circulating in the world, so that the issuance of new money for stimulus can cause hyperinflation. This condition makes BTC a part of the best investment alternative today. The concept of Bitcoin that defies Central Authority becomes a tool to fight inflation. JP Morgan is currently only worried that if many big players own BTC, then there will be a possibility of short selling in the future and causing BTC prices to drop. They only dampen the hype in society.

[famososMuertos]

I do not know where they get the idea "that the crypto community expects other companies to enter," it is a comment type "sensation" "conjecture" etc ...
As part of that cryptographic community, I think we are waiting for ordinary people to react and become part of it, the plurality of bitcoin is in the great diversity of investors and not in a few large investments ...

It is a pity that the "echo" of bitcoin is heard through entities against which bitcoin tries to untangle itself, but which undoubtedly seems to be a necessary evil.

[The Sceptical Chymist]

If inflation rises. Prices trend upwards. And concerns about lockdowns coupled with stimulus spending mount. Employees and the private sector will naturally embrace previous metals and BTC in an effort to insulate themselves from negative effects associated with fiat devaluation, inflation and stimulus spending.

People might flee from the stock market (and cash) to precious metals, but I'm not sure if bitcoin is really considered a safe-haven asset that investors go to when they're looking to preserve their purchasing power.  Sure, it might seem all rosy right now when bitcoin is hitting all-time highs weekly, but we all know how volatile it is--especially compared to metals. 

And yeah, JP Morgan can certainly be wrong here.  They've been wrong plenty of times in the past and will be wrong many more times in the future.  They don't have the market cornered on crystal balls.

[laredo7mm]

JP Morgan is a bank, isn't it?

I can't even expect them to support BTC unless they find a way to be in advantage themselves. Since MicroStrategy and Tesla have invested that much into BTC, I really expect a strong domino effect going through most of the large companies.

As time passes, Musk's and MicroStrategy's value will most likely rise at some point to an ATH specifically due to their recent actions of purchasing BTC. Other large companies will not be left alone in the course and all they have to do is just see the price evolution of 2009-2021 to realize that they're gonna be left behind if large corporations invest in BTC while they don't.

The larger company just realize that in 2021 that's why they invested in the crypto market not to let the train go out of their hands. Now some larger companies saw that they have already missed their train so they are just creating fud to buy BTC cheap. We may see another correction this year but this time there won't be a scenario like 2018.