1% of Bitcoin (BTC) in every institutional investor’s wallet: a tiny percent that could propel BTC well beyond $ 100,000. JPMorgan Chase recommends Bitcoin to its customers, while making reservations.
1% BTC: a qualified recommendation
JPMorgan Chase now understands the benefits of adding a small percentage of Bitcoin in an asset portfolio.
February 24, 2021, the research director, Joyce Chang, and the vice-president of strategic research, Amy ho, indicated in a note to their clients that “investors can probably add up to 1% of their cryptocurrency allocations in order to realize an efficiency gain in the risk-adjusted total returns of the portfolio”.
The strategists of JPMorgan explained that “cryptocurrencies are investment vehicles but not financing currencies”.
Rather, he recommends hedging by fiats like the yen or the dollar against the risks of macro events.
Many analysts see the BTC a way to hedge against large fluctuations in traditional asset classes, including stocks, bonds, and commodities.
JPMorgan does not share this opinion. He also estimates that recent prices of Bitcoin are well above the fair value of the latter.
The massive adoption of BTC According to him, its correlation with cyclical assets whose price increases and decreases according to economic changes.
These points would decrease according to JPMorgan, the advantages of diversifying portfolios integrating the BTC. Subscribe for freeJoin our community of Bitcoin and cryptocurrency enthusiastsemail * Validate
From scam to 146,000 USD
The CEO of JPMorgan, Jamie Dimon, described cryptocurrencies as a scam in September 2017.
At the beginning of February 2021, the co-president of the bank, Daniel Pinto, states that it was certain that the request for BTC “Will be there at some point”.
JPMorgan had made a crypto shift in 2020, opening its doors to Coinbase and to Gemini. Its analysts even predicted a BTC to 146,000 USD.
An investment bank that recommends a Bitcoin supposed to eliminate financial intermediaries like banks: BTC is becoming a must-have asset for the portfolios of retail and institutional investors. Bitcoin is gaining strength with increased support from strategic players such as the media and banks. Is 1% BTC in Every JPMorgan Client Wallet the Key to Propelling Bitcoin to $ 146,000?
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which appear to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.