With $ 3.3 trillion under its management, JPMorgan Chase is one of the largest banks in the US. JPMorgan strategists, who previously made jaw-dropping price predictions on the Bitcoin (BTC) price, now made an important recommendation to cryptocurrency investors.
3 reasons to invest in cryptocurrency
According to a recent report published by JPMorgan, there are 3 critical reasons to invest in cryptocurrencies, and these can be listed as follows:
- Overvalued stock market,
- Treasury bonds having trouble protecting against inflation
- Situations that shocked the market, such as record-breaking inflation after the coronavirus.
JPMorgan experts emphasized that in order to take precautions against such situations, each investor can invest in cryptocurrency to represent 2% of the total portfolio. One such, according to experts. investment can make the management of the entire portfolio “more efficient”.
Worst protection against violent movements
Stating that cryptocurrencies are one of the “worst protection tools” in the face of the decline in global markets, experts pointed out that an example of this was seen in March 2020. The bitcoin price fell close to 50% in a single day, showing that it is in correlation with stock markets. Later, it was seen that the BTC price rose much faster than global assets.
JPMorgan strategists announced earlier last month that Bitcoin could hurt gold a lot in the long run. Emphasizing that Bitcoin can replace the gold market day by day, experts drew attention to the fact that three-digit prices can be seen in the continuation of this.
JPMorgan’s leading analyst and Global Markets Managing Director Nikolaos Panigirtzoglou stated that everyone expects the BTC price to exceed $ 50,000 by December 2021. However, according to the expert name, speculation in the market, legal regulations and the state of the US dollar pose a risk for BTC.