JP Morgan has attributed Bitcoin’s recent impressive performance to institutional investors. The Wall Street giant observed that Bitcoin’s rally to $35,000, the highest point since May 2020, is primarily driven by financial institutions. In a research report, JP Morgan’s analysts pointed out that the surge in Bitcoin futures positions on the CME Group has reached its peak for this year, while the cryptocurrency has been flowing into larger wallets.
JP Morgan’s analysis of the cryptocurrency futures market confirmed that institutional investors played a significant role in the recent price movement. The open interest in CME Bitcoin futures has surged in the past week, hitting its highest level since the demise of the cryptocurrency exchange FTX last year. Notably, smaller wallets dominated previous Bitcoin flows, reflecting the influence of retail investors.
Furthermore, JPMorgan Chase, the parent company of JP Morgan, reported that its proprietary digital token, JPM Coin, handles a daily transaction volume of $1 billion for wholesale customers. Although this amount represents a small portion of the $10 trillion in payments processed through the bank’s traditional platform daily, it underscores JPM Coin’s growing prominence in recent months. The token is primarily used for transactions denominated in US dollars, but plans are underway to broaden its scope to include retail users.
JP Morgan’s analysis and insights provide valuable observations on the evolving role of institutional investors in the Bitcoin market. Moreover, the success of JPM Coin highlights the potential for digital tokens within traditional banking systems, albeit with room for expansion and further adoption.
📍 Related reports 📍
– JPMorgan Chase’s blockchain regarded unfavorably by retail investors
– JPMorgan Chase: Customer interest shifts towards “RWA real asset tokenization” over cryptocurrency, signaling an end to Bitcoin’s prosperous days
– Impact of Fed’s interest rate hike may surpass expectations, warns JPMorgan Chase CEO: Global unpreparedness for 7% interest rates
JP Morgan pointed out the day before yesterday that the recent excellent performance of Bitcoin is mainly driven by institutional investors. On the one hand, Bitcoin futures positions on the CME Group have increased dramatically in recent days, reaching a new highlight this year; on the other hand, the recent Bitcoin It also mainly goes to larger wallets.
(Previous summary: Arthur Hayes: Never mind the Bitcoin ETF, the reason for the surge in BTC is the flight from the US debt)
(Background attachment: Bitcoin beats the market! The ratio with Nasdaq reached a one-year high, and the crypto market share rose above 54%)
Benefiting from the continued spread of positive news about Bitcoin spot ETFs, Bitcoin once surged to $35,000 this week, setting a new high since May of last year.
However, according to CoinDesk, the Wall Street giant, JPMorgan, noted in a research report on the 25th that unlike before, Bitcoin’s recent outperformance was mainly driven by institutional investors, led by Nikolaos A team of analysts wrote led by Panigirtzoglou:
The latest price movement appears to have an institutional connection.
Massive Bitcoin flows into institutional wallets
JPMorgan Chase first stated that its analysis of the cryptocurrency futures market confirms their judgment:
CME (CME Group) Bitcoin futures open interest has increased over the past week, not only hitting a new high this year, but also reaching the highest level since last year before the bankruptcy of the cryptocurrency exchange FTX, which often includes institutional investors plays a big role..
Extended reading: Have you made money? 80% of Bitcoin addresses are now profitable, and the BTC Group CME futures position has reached a new high of 100,000 coins
However, JPMorgan Chase also noted that the CME Ethereum futures position remains sluggish.
On the other hand, JPMorgan Chase also monitored that Bitcoin has mostly flowed into larger wallets recently, which is very different from previous quarters:
Bitcoin flows at the time were dominated by smaller wallets and therefore driven more by retail investors.
JPM Coin handles $1 billion in transactions every day
Additionally, according to Bloomberg, Takis Georgakopoulos, head of JPMorgan Chase’s global payments business, said in an interview yesterday that JPMorgan Chase currently processes a large number of transactions each day through its JPM Coin digital token designed for wholesale customers :
We currently process $1 billion in funds per day for many large companies through JPM Coin.
At the same time, Georgakopoulos emphasized that although this figure is only a small part of the $10 trillion in payments processed by JPMorgan Chase through its traditional platform every day, it still shows that JPM Coin has won huge momentum in recent months.
Finally, Georgakopoulos also added that although JPM Coin’s daily transactions are mostly conducted in the US dollar, they will continue to expand its use. In addition, although JPM Coin currently only allows wholesale customers or corporate customers of the bank to conduct transactions, and its retail version has not yet been launched, JPMorgan Chase also plans to expand it to retail users.
📍Related reports📍
JPMorgan Chase’s blockchain is worse than a Ponzi in the eyes of retail investors
JPMorgan Chase: 99% of customers care more about “RWA real asset tokenization” than cryptocurrency, and the good days of BTC are over…
The impact of the Fed’s interest rate hike may be beyond imagination!JPMorgan Chase CEO: The world is not ready for 7% interest rates.
#JPMorgan #Chase #Main #reason #Bitcoin #surge #institutional #buying #JPM #Coin #handles #billion #transactions #day #DongZuDongCha #influential #blockchain #news #media
