According to Reuters, analysts in the significant international investment bank think that the real value of cryptos remains unproven, which they only make sense at a hypothetical"dystopian" event, wherein shareholders have lost faith in major traditional assets like gold and the U.S. buck . The analysts said in a report:
"Even in extreme scenarios like a recession or financial crises, there are far more liquid and less-complicated instruments for transacting, hedging and investing [compared to cryptocurrencies]."
JP Morgan also said that institutional participation in the crypto market has slumped over the previous six months, together with individual investors making up most the market. In its crypto file, the business maintained that using crypto for obligations will likely stay"contested," including that the firm was not able to find any significant retailers who admitted crypto in 2018.
JP Morgan's analysts have further suggested that Bitcoin is likely to drop to around $2,400, and could even fall under $1,260 in case the present bear market stays. At press time, the largest cryptocurrency is trading at $3,595down approximately 1.7 within the last week, based on data from CoinMarketCap.
While JP Morgan forecasted that"widely-hyped" blockchain technologies won't make any actual difference for banks at least three to five years, the investment bank still reasoned that spread ledger technologies (DLT) has capacity to lower prices for international banks and digitize various complicated processes.
While formerly saying he does not"really provide a sh*t" roughly Bitcoin, '' he admits blockchain's potential, saying,"Blockchain is actual, it is tech, however, Bitcoin is not the same as a fiat currency"