The Worst Regulatory Environment for Crypto Is Behind Us
According to a report from JPMorgan, Donald Trump’s victory in the November presidential election signals a positive shift for the cryptocurrency market in the United States. Since his re-election, the total cryptocurrency market capitalization has surged by 65%, reflecting growing confidence in the sector.
Pro-Crypto Stance of the New Administration
The new administration not only expresses a welcoming attitude toward cryptocurrencies but has also shown an intention to support this asset class, analysts led by Kenneth Worthington noted.
Trump’s government has demonstrated a willingness to openly discuss crypto market regulation and strategies to keep future development within the United States. The report highlights that the newly elected president has already begun nominating individuals who will play key roles in shaping crypto policy and enforcement.
End of the Hostile Regulatory Environment
JPMorgan asserts that a bottom has been set, meaning the “worst regulatory environment” for cryptocurrencies is now in the past. The crypto sector is expected to become:
Safer,More transparent,More productive from a regulatory perspective.
Political Impact Will Take Time to Materialize
Despite the positive outlook, JPMorgan warns that the market may not see the political impacts for at least 9 to 12 months into Trump’s term. The report emphasizes that regulatory changes and their benefits will take time to be implemented.
The Role of the CFTC in Crypto Regulation
JPMorgan notes that Trump’s administration has yet to make a nomination for the Commodity Futures Trading Commission (CFTC) chair. This position is particularly significant as it is likely to influence the regulation of Bitcoin (BTC) and Ethereum (ETH).
More Innovation and Tokens on the Horizon
A more productive regulatory environment could lead to the following advancements:
Listing of more tokens on exchanges and broker platforms,Encouragement of new product innovations within the crypto sector.
JPMorgan’s report emphasizes that a friendlier regulatory approach could propel the cryptocurrency industry into a new era of growth and stability.

#donaldtrump , #JPMorgan , #BTC☀ , #CryptoNewss , #cryptoregulation

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

According to CoinDesk, in a recent research report, JPMorgan challenged the notion that investors are shifting their assets from gold to bitcoin (BTC) this year.

The report, spearheaded by Nikolaos Panigirtzoglou and his team, illustrates that both institutional investors and private individuals have concurrently amplified their stakes in gold and Bitcoin throughout the current year rather than transitioning their investments from one to the other.

This clarification comes in the wake of observations noting outflows from gold-based exchange-traded funds (ETFs) coinciding with a notable increase in inflows into Bitcoin ETFs, sparking speculation about a potential shift in investor preference from the traditional safe-haven asset to the digital currency.

The most likely explanation for the weakness in gold stocks is that investors are selling them to buy #BitcoinETFs instead. That means #Bitcoin has basically become a bet against #gold. So when gold inevitably breaks out, the money to buy gold stocks will come from Bitcoin ETFs.

— Peter Schiff (@PeterSchiff) February 28, 2024

Contrary to this speculation, the JPMorgan report asserts a simultaneous endorsement of both assets by investors.

The analysis points out a particular interest from speculative institutional investors, including hedge funds and momentum traders such as Commodity Trading Advisors (CTAs), whom it claims have been instrumental in propelling the rallies in both gold and Bitcoin futures starting inFebruary. Specifically, the analysis notes a sharp increase in investment, with Bitcoin futures witnessing a $7 billion position build-up and gold futures seeing a $30 billion increase.

However, the report cautions about the high risk of mean reversion for both assets. Mean reversion, a financial theory suggesting that asset prices and returns eventually move back towards their historical average, indicates that both gold and Bitcoin could potentially see a decrease in their values to align closer with their long-term averages. This cautionary stance is underscored by the current enthusiasm around these investments, which could lead to heightened volatility and correction phases if market sentiments shift.

The report also mentions the significant role played by MicroStrategy, a software development firm known for its aggressive Bitcoin acquisition strategy. The company has reportedly purchased over $1 billion worth of Bitcoin in 2023, adding to its substantial acquisitions from the last quarter of 2023. JPMorgan suggests that such large-scale, debt-funded purchases by MicroStrategy have not only amplified the rally in Bitcoin but also introduced additional leverage into the market. This, according to the bank, could potentially escalate the risk of a severe correction during a downturn, as the market might experience intensified deleveraging effects.

In the dynamic landscape of digital assets, Bitcoin stands as a formidable contender, but recent research from JPMorgan sheds light on the uphill battle it faces in matching gold’s dominance within investor portfolios. This analysis, delving into Bitcoin’s potential market cap, price projections, and the burgeoning Bitcoin exchange-traded fund (ETF) market, highlights the intricate challenges posed by the cryptocurrency’s inherent risk and volatility.&middot

For the full story, head over to TheCurrencyAnalytics.com.

Despite JPMorgan’s role in BlackRock’s SEC-approved Bitcoin ETF, its CEO, Jamie Dimon, remains resolute in his anti-crypto rhetoric and BTC skepticism.

Bitcoin (BTC) holds little utility outside of serving as a channel for hundreds of billions in illicit wealth from fraud, money laundering, tax avoidance, and sex trafficking, said JPMorgan Chase CEO Jamie Dimon.

Speaking with CNBC at the 2024 World Economic Forum in Davos, Dimon commented on the spot BTC ETFs approved by Gary Gensler’s Securities and Exchange Commission (SEC) on Jan. 10, noting that blockchain’s value exists in tokenization of real-world assets like real estate and not in cryptocurrencies like Bitcoin.

Blockchain is real and it’s a technology. We at JPMorgan use it. It’s going to move money, data, and it’s efficient. We’ve talked about it for 12 years now. Bitcoin on the other hand is the pet rock.

Jamie Dimon, JPMorgan CEO

Dimon, whose banking giant is an authorized participant in BlackRock’s iShares Bitcoin Trust ETF, added that he’s unclear on Larry Fink’s position concerning the nascent digital asset industry. JPMorgan’s boss did, however, share his personal view, noting that he wouldn’t advise anyone to get involved in Bitcoin.

You might also like: SEC approves spot Bitcoin ETF on accelerated basis

I don’t care so please just stop talking about this sh*t. I don’t know what Larry Fink would say about Blockchain versus crypto with utility or versus crypto like Bitcoin that does nothing.

Jamie Dimon, JPMorgan CEO

Dimon’s comments in Davos echo his congressional testimony weeks before spot BTC ETFs were accepted. During the hearing, the JPMorgan CEO said he would shut down Bitcoin if he were the United States government and attributed its sole use case to criminal operations.

However, Chainalysis reports have clarified that less than 1% of crypto transactions are tied to illegal activities.

"There are cryptocurrencies that do something, that might have value. And then there's one that does nothing, I call it pet rock. The #Bitcoin, or something like that," says @JPMorgan CEO Jamie Dimon. "It has some use cases. Everything else is people trading among themselves." pic.twitter.com/EnUBuIEHkI

— Squawk Box (@SquawkCNBC) January 17, 2024

Meanwhile, BlackRock’s CEO Larry Fink, whose firm works with JPM for its spot BTC fund, said the asset management giant sees value in another crypto-related product underpinned by the second-largest digital asset, Ethereum (ETH).

BlackRock’s BTC ETF has traded hundreds of millions of dollars since its Jan. 11 launch, along with other Bitcoin funds from issuers like ARK 21Shares, Bitwise, and VanEck, while Grayscale’s GBTC recorded consecutive days of outflows.

Read more: BlackRock’s Larry Fink points to value in Ethereum ETFs, crypto asset class

What are the odds the Securities and Exchange Commission will greenlight US spot Ethereum exchange-traded funds by May?

Not “higher than 50%,” investment banking giant JPMorgan wrote in a note on Thursday — much lower than predicted by market watchers and online bettors

Ethereum ETF deadline approaches

The investment bank’s assessment comes in advance of the SEC deadline to approve Ark Invest’s spot Ethereum ETF by May 23, and hinges on several factors.

On the approval side is the fact that the Grayscale Ethereum Trust discount against Ethereum has declined since last summer and remained at about 12% since early December, the researchers said.

A second reason is that future Ethereum ETFs were approved in September, which “by itself implies that Ethereum is deemed to be a commodity,” analysts wrote.

A third reason to be bullish is the notion that the SEC may soon categorise Ethereum as a commodity, JPMorgan wrote.

That view has been bolstered by the SEC not citing Ethereum in its lawsuits against crypto exchanges Binance and Coinbase, the analysts wrote.

Analysts at UK-based bank Standard Chartered made a similar point in a research report earlier in January.

Still, the authors behind the JPMorgan report were “sceptical that the SEC will classify Ethereum as a commodity as soon as May.”

The report said: “If anything, with Ethereum having transitioned from proof-of-work to proof-of-stake and the negative impact this transition had on Ethereum decentralisation, Ethereum looks more similar to other cryptocurrencies outside Bitcoin, which are deemed securities by the SEC.”

The SEC’s string of lawsuits against the likes of Coinbase for its Ethereum staking services “make a spot Ethereum ETF approval more challenging, at least until these lawsuits are resolved,” the analysts wrote.

JPMorgan’s 50% odds of a spot Ethereum ETF approval are significantly lower than the 70% chance Bloomberg Intelligence analyst and crypto’s go-to ETF pundit Eric Balchunas recently offered.

Online bettors had placed similar odds of an approval by May 31 on prediction market Polymarket earlier in January, though they have dropped from 82% on January 10 to 56% today.

Crypto market movers

Bitcoin is up 0.2% to below $41,300 since Wednesday.

Ethereum is up 0.7% to $2,490.

What we’re reading

Texas cold snap threatens 15% of global Bitcoin mining activity — DL News

Bitcoin ETFs Surpass Silver ETFs In Assets Under Management — Milk Road

Donald Trump Promises to Never Allow CBDCs if Elected President — Unchained

EU’s new money laundering deal poised to burden crypto more than traditional finance — DL News

Tether takes fire as UN says stablecoin is ‘preferred choice’ for $17b in Asian crime rackets — DL News

Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at sebastian@dlnews.com.

US banking JPMorgan has maintained a cautious stance on cryptocurrencies, according to its latest report that was published on Apr. 23. 

According to JPMorgan, the cryptocurrency market is currently suffering from the lack of bullish catalysts after ETF inflows dried up. 

At the same time, the bank's analysts cited elevated positioning, underwhelming venture capital (VC) funding, and the current production costs as the main bearish catalysts contributing to the ongoing selling pressure. 

Last month, JPMorgan predicted that the Bitcoin halving was priced in, pouring cold water on some bullish predictions. 

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Back in February, it said that the price of the largest cryptocurrency could crash to as low as $42,000 after the halving event. The bank also predicted that the production cost of a single coin could roughly double. Around that time, Bitcoin bull Mike Novogratz also warned that the Bitcoin market was getting frothy. 

The price of Bitcoin surged to its current all-time high of $73,737 in March and went on to log eight consecutive green monthly candles. However, it experienced a dramatic correction in April and then kept plunging in May due to disastrous ETF outflows and macroeconomic concerns. The flagship cryptocurrency is currently trading at $59,110.

Meanwhile, JPMorgan CEO Jamie Dimon recently doubled down on his long-standing criticism of Bitcoin, calling the largest cryptocurrency "a fraud" and a "Ponzi scheme." He also predicted that the flagship cryptocurrency would not go anywhere as a currency. At the same time, he still sees some value in blockchain technology. 

Spot Bitcoin exchange-traded funds in the US have clocked up big volumes in the first week of trading, yet Bitcoin has fallen 11%. JPMorgan blames investors ditching Grayscale’s ETF.

Grayscale’s spot Bitcoin ETF, GBTC, has seen over $1.5 billion in outflows since January 11. The exodus has acted as an “additional drag for crypto markets,” JPMorgan analysts led by Nikolaos Panigirtzoglou said in a report shared with DL News on Thursday.

Things could get worse for GBTC, as the investment bank estimates an additional $10 billion could leave the fund.

“Liquidity and market depth also matter but again there is risk for GBTC on that front also if other spot Bitcoin ETFs manage to reach critical mass in terms of size and liquidity,” JPMorgan said.

Liquidity typically refers to the ability to sell an asset for cash. Less liquidity poses a risk for investors as they could find it hard to sell their shares.

“A lot more capital, perhaps an additional $5 billion to $10 billion, could exit GBTC if it loses its liquidity advantage,” the report said.

Price pressure

Following the fund’s conversion from a close-ended trust, investors have taken the opportunity to exit their GBTC positions. Some of these investors “have been taking full profit post ETF conversion by exiting the Bitcoin space entirely rather than shifting to cheaper spot Bitcoin ETFs,” the report said.

Based on JPMorgan’s estimates, which were made pre-approval, Panigirtzoglou says another $1.5 billion could leave GBTC in the next few weeks. This would put further pressure on Bitcoin’s price, the report said.

“Whatever the motive behind the past few days’ $1.5 billion of outflows from GBTC, these outflows are exerting pressure on GBTC to lower its fees,” the report noted, referring to the fund’s 1.5% management fee.

Grayscale is charging far more than its competitors. Ark Invest launched with zero fees for the first year and 0.21% thereafter. BlackRock, the world’s largest asset manager with $10 trillion in assets under management, charges 0.12% for the first year, or on the first $5 billion, rising to 0.25% after that.

Inflows into these competing funds have been “decent,” JPMorgan’s report said. The inflows are comparable to previous Bitcoin-related launches, such as Bitcoin futures on the CME and Bitcoin futures ETFs.

“Most of this $3 billion of inflow reflects a rotation from existing Bitcoin vehicles,” JPMorgan said. But it’s not just institutional investors that are moving money. Retail traders appear to be shifting from exchanges to cheaper spot Bitcoin ETFs.

“Smaller Bitcoin wallets, typically attributed to retail investors, have seen some retrenchment in recent days,” the bank said. JPMorgan uses on-chain cumulative Bitcoin flows of smaller wallets as a proxy for these investors.

Adam Morgan McCarthy is a markets correspondent for DL News. Have a tip? Contact the author at adam@dlnews.com.

Despite optimism about Bitcoin’s future trajectory heading into the Bitcoin Halving, analysts at JPMorgan have raised concerns that things may not go according to everyone’s expectations. They believe that a storm still lies ahead for the flagship crypto token before any massive move to the upside. 

Further Bitcoin Pullbacks Are To Be Expected

According to a Bloomberg report, JPMorgan strategists have warned that Bitcoin could still experience further pullbacks following its recent decline. They alluded to the recent net outflows recorded by the Spot Bitcoin ETFs, which underscored the current bearish sentiment in the Bitcoin ecosystem. 

These strategists, led by Nikolaos Nikolaos Panigirtzoglou, also highlighted the sustained open interest in CME Bitcoin futures as another bearish signal for Bitcoin’s price. They further argue that Bitcoin “still looks overbought” and expect further price dips leading up to the Halving event in mid-April. 

Meanwhile, these JPMorgan analysts emphasized the decline in net inflows into Spot ETFs, noting that this proves that a sustained one-way net inflow is not possible. Therefore, they expect investors in these funds to keep taking profits heading into the Bitcoin Halving. This wave of profit-taking is also more likely, considering that Bitcoin “still looks overbought despite the past week’s correction.” they claimed. 

This recent research note by JPMorgan further reaffirms their bearish sentiment towards Bitcoin’s price despite the flagship crypto exceeding expectations. Last month, the bank predicted that Bitcoin could drop to as low as $42,000 after April as “Bitcoin-halving-induced euphoria subsides.”

Naeem Aslam, chief investment officer at Zaye Capital Markets, also echoed JPMoragn’s sentiments when he suggested that Bitcoin’s recent rally didn’t show enough strength. Aslam believes Bitcoin could fall below $50,000 if the Halving event “fails to really keep the momentum going.”

What Could Happen After The Halving Event

Crypto trader and analyst Rekt Capital recently provided insights into what could happen after the Havling event while elaborating on the four phases of Bitcoin Halving. According to him, there is usually a re-accumulation period after the Halving, which could last for up to five months. 

During this period, he noted that many investors get “shaken out in this stage due to boredom, impatience, and disappointment with lack of major results in their BTC investment in the immediate aftermath of the Halving.” Rekt Capital added that this time could be different since it is the first time this re-accumulation could develop around the new all-time high (ATH) area. 

Therefore, he believes this “Re-Accumulation Range may simply take the shape of a regular sideways range and may not last very long before additional uptrend continuation.”

BTC price struggles to establish support | Source: BTCUSD on Tradingview.com

Featured image from Crypto News, chart from Tradingview.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Source: NewsBTC.com

The post Bitcoin Troubles Far From Over As More Carnage Looms, JPMorgan Analysts appeared first on Crypto Breaking News.

The financial world is buzzing with the recent approval of spot Bitcoin ETFs, a move that has stirred up a whirlwind of reactions from major banks and investors alike. It’s like opening Pandora’s box in the crypto world – everyone has something to say, but what really matters is the impact on the market and the potential transformation of digital assets as we know them.

The Rising Tide of Bitcoin ETFs

Foremost, the introduction of a Bitcoin ETF marks a watershed moment for cryptocurrency, potentially ushering in a new era of investment. Banks like Deutsche Bank are optimistic, foreseeing a surge in Bitcoin prices. They argue that the ETF, acting as a bridge between traditional finance and the enigmatic world of crypto, will draw in both retail and professional investors. This influx of new investors could lead to significant market inflows, driving up Bitcoin prices. The logic is simple yet compelling – with Bitcoin’s supply capped, any increase in demand is bound to push its value north.

However, not everyone is wearing rose-tinted glasses. JPMorgan, for instance, remains skeptical. They draw parallels with the Gold ETF, noting that while anticipation drove up gold prices initially, they eventually plateaued post-launch. Their stance is akin to waiting for the other shoe to drop, watching keenly for the direction and magnitude of Bitcoin ETF flows, comparing it to the modest $3.5 billion gathered by the Gold ETF in its first year.

Market Dynamics and Future Outlook

Moving on, it’s crucial to consider the macroeconomic canvas that Bitcoin ETFs are painted on. Central bank rate cuts projected for 2024 are expected to be a game-changer. With traditional investments potentially losing their sheen due to lower interest rates, investors might pivot towards cryptocurrencies like Bitcoin for higher returns. This shift could add another layer of upward pressure on Bitcoin prices. However, Morgan Stanley offers a more measured view, suggesting this development is a mere incremental positive for the asset management industry. They foresee a potential uptick in customer acquisition and asset capture, but nothing revolutionary.

On the regulation front, comprehensive frameworks are anticipated to be a boon for the industry. A more defined regulatory environment could lead to increased corporate adoption, greater liquidity, and potentially, reduced volatility. But let’s not get ahead of ourselves. Regulation is a double-edged sword – it could either foster growth or stifle innovation.

UBS, on the other hand, maintains a stance of cautious skepticism. They see the approval of Bitcoin ETFs as beneficial for investors facing technical challenges in digital asset storage. However, they advise a focus on disruptive technologies in public and private markets, particularly those leveraging artificial intelligence, over direct crypto investments.

The public sentiment, as per Deutsche Bank’s survey, reflects uncertainty and caution. A significant portion of consumers remain unsure about Bitcoin’s future price trajectory. This mixed bag of opinions and projections paints a picture of a market at a crossroads, with the Bitcoin ETF approval being a significant, albeit unpredictable, factor in its future path.

So there you have it. The approval of spot Bitcoin ETFs is not a magic bullet for the cryptocurrency market. It’s a complex, multifaceted development that could either propel Bitcoin to new heights or leave it struggling to meet inflated expectations. As we venture into this new chapter, the only certainty is uncertainty. The Bitcoin ETF has opened up new avenues, but whether these lead to a financial revolution or a cautionary tale remains to be seen. One thing is clear: the cryptocurrency market is anything but predictable, and the introduction of Bitcoin ETFs is just another twist in its ever-evolving narrative.

Post By: CryptosHeadlines.com

JPMorgan, as disclosed by their global head of payments, Takis Georgakopoulos, moves a daily sum of $1 billion through the JPM Coin. This blockchain-based system operates within the bank for transferring value and is permissioned, meaning it’s restricted to authorized users.

JPMorgan’s global head of payments, Takis Georgakopoulos, disclosed that the JPM Coin payment system handles a substantial daily volume. He stated, “Today we move $1 billion every day through JPM Coin for a number of large companies.” While this amount is a small portion of the massive $10 trillion in daily payments processed by JPMorgan through its traditional platforms, it’s a notable achievement. It highlights the significant progress made by JPM Coin in recent months.
Back in June, it was reported that JPMorgan had processed over $300 billion in transactions using JPM Coin since its launch in 2020. At the current pace of $1 billion in daily transactions, the bank is on track to reach that milestone within the next year.
Initially, JPM Coin exclusively supported U.S. dollars, but it expanded its offerings to include euros in June of this year.
“JPM Coin’s Retail Expansion Plans and Benefits”
Currently, the retail version of JPM Coin is not available. It exclusively caters to JPMorgan’s wholesale and corporate clients for transactions. However, there are plans to broaden the system’s accessibility to retail consumers. According to Georgakopoulos, “The next step in [JPM Coin] journey is to think about how you can create a more retail version of that so that you can bring that same efficiency to consumers.”
JPM Coin is a blockchain-based payment system with restricted access, primarily serving the bank’s wholesale clients for U.S. dollar and euro transfers. Operating around the clock, it speeds up transactions, allowing clients to initiate payments just before they are due and enhancing liquidity management.
In addition to JPM Coin’s intra-bank value transfer system, the bank is also engaged in a project called Partior, aimed at establishing an inter-bank settlement and clearing system. Launched in 2021 by JPMorgan, DBS, and Temasek Holdings, Partior seeks to improve cross-border payments. In the previous year, Standard Chartered joined as a founding shareholder in Partior after making an undisclosed investment.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
#Blockchain #CryptoMarket #Bitcoin #CryptoNews #JPMorgan

🚨😱🚨ATTENTION🚨😱🚨

Bitcoin Exposed to Possible $1.5 Billion GBTC Sales, JPMorgan Says

According to the report, an additional $1.5 billion could flow out of GBTC, putting further pressure on Bitcoin's price in the coming weeks.

has fallen more than 15% since the inaugural launch of cash exchange-traded funds

last week, with $1.5 billion flowing out of the Grayscale Bitcoin Trust GBTC, the financial giant said Thursday

JPMorgan Chase has issued a cautionary note regarding MicroStrategy Inc’s aggressive Bitcoin acquisitions, which amounted to $2 billion over the past six months.

The investment bank expressed concerns about the possibility of aggravating the impact of a potential cryptocurrency market downturn due to these substantial purchases. Presently, according to Bitcoin Treasuries data, MicroStrategy holds the title of the world’s foremost private holder of the cryptocurrency.

MicroStrategy’s Approach Amplifying Market Volatility

MicroStrategy’s recent Bitcoin buying spree, highlighted by the acquisition of $821 million worth of Bitcoin between February 26 and March 10, has raised eyebrows among market analysts.

This surge in purchases followed the company’s sale of $1.2 billion in senior convertible notes earlier in the year, a move that attracted attention due to its potential impact on market dynamics. The notes will reach maturity on March 15, 2030, unless they are repurchased, redeemed, or converted earlier as per their terms.

According to JPMorgan analysts, MicroStrategy’s approach of financing Bitcoin acquisitions via debt amplifies leverage and speculative enthusiasm within the continuing cryptocurrency surge. Employing senior convertible notes, which have the potential for conversion into company stocks and entail interest payment obligations, introduces further intricacies to the firm’s financial framework.

MicroStrategy Shaping Bitcoin Market Dynamics

The timing of MicroStrategy’s aggressive Bitcoin acquisitions coincides with a period of heightened market enthusiasm, with Bitcoin reaching a new all-time high of $73,500 before settling around $66,900. JPMorgan suggests that MicroStrategy’s actions may have contributed to amplifying the ongoing rally, as the company positions itself as a prominent player in the Bitcoin market.

Saylor’s Taste for Bitcoin

Led by CEO Michael Saylor, MicroStrategy has embarked on a strategic shift, rebranding itself as a “Bitcoin development company” and prioritizing Bitcoin investments as part of its corporate strategy. His holdings currently totals 205,000 Bitcoin, valued at $14.7 billion.

This significant accumulation exceeds the holdings of the largest BlackRock bitcoin exchange-traded fund, which presently amounts to 197,943 bitcoins.

While MicroStrategy’s bold approach to Bitcoin investment has garnered attention, including that of JPMorgan, market watchers are keen to see the effect the warning by the global body would have on market sentiments in the coming days.

The post JPMorgan Warns of Risks Amid MicroStrategy’s Latest $2B Bitcoin Purchase appeared first on Latest News and Insights on Blockchain, Cryptocurrency, and Investing.

JPMorgan (JPM) has hailed Binance’s recent settlement with the U.S. Department of Justice (DOJ) as a ‘positive step’ for the crypto sector. 

Analysts at the firm believe it will be a beneficial step for both Binance and the wider cryptocurrency market, as revealed to the Block. 

The resolution of these legal issues is seen as particularly advantageous for Binance’s operations and its BNB Smart Chain business. 

JPMorgan’s analysts emphasize that the settlement brings much-needed clarity, reducing uncertainty surrounding Binance, and that it is not only a relief for the exchange itself but also for the broader crypto market. 

JPM analysts point out that resolving these legal challenges removes what was perceived as a looming systemic risk. The fear was that issues with Binance could lead to broader market instability, especially in the event of a potential collapse of the exchange.

See Also: Microsoft Chose Apple’s Macs Over Own Product For OpenAI Team

Binance Aftermath And Future Implications

The settlement, which involves a hefty sum of $4.3 billion, marks one of the largest corporate settlements in the history of the United States. 

Additionally, Binance CEO Changpeng Zhao has agreed to a personal fine of $50 million, and will step down from his role as CEO as part of the settlement terms.

Following Zhao’s exit, Richard Teng took over as the exchange’s new CEO, who was previously the Head of Regional Markets. 

The fundamentals of our business are VERY strong.

Binance continues to operate the world's largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits. https://t.co/PHq2YS0CP5

— Richard Teng (@_RichardTeng) November 22, 2023

Following his guilty plea, Zhao was released on a $175 million bond. While the now former CEO faces a possible prison sentence of up to 18 months, his sentencing is scheduled for Feb. 23.

This marks a significant chapter in the regulatory oversight of the cryptocurrency market and sets a precedent for how legal and compliance issues may be navigated in the future.

The post JPMorgan: Binance Settlement Is A Positive Development For Crypto Industry appeared first on BitcoinWorld.

The Uniswap V4 engine will have the most thoroughly audited code, ever published on Ethereum.

The first stage of the plan, code freeze, is still ongoing.

Uniswap, a decentralized crypto exchange, has dropped signals on twitter about the impending release of Uniswap V4, an automated market maker protocol that is non-custodial, non-upgradeable, and permissionless.

Uniswap V4 is expected to be released somewhere in the third quarter of this year, according to the twitter post. The protocol brought attention to the fact that enthusiasm in the Uniswap V4 Upgrade has been skyrocketing. Moreover, Uniswap said in a post that the protocol anticipates the Uniswap V4 engine to have the most thoroughly audited code that has ever been published on Ethereum.

Development Underway

The first stage of the plan, code freeze, is still ongoing. Uniswap states that this includes testing, gas optimizations, security upgrades, and core code completion. Prior to proceeding to the next level, this phase will see the completion of all additional ancillary details.

In the next stage, top auditing companies will conduct thorough audits. At the Uniswap community level, there will be an auditing contest. So that the team may make observations, Uniswap V4 will thereafter be released on testnets. The Uniswap V4 code will undergo final revisions at the end of the day, taking into account the input.

By the third quarter of 2024, the first two stages should have been finished. Considering this, the third and final phase of the offering’s deployment to the Ethereum mainnet will occur in the third quarter.

Developers will be able to develop bespoke Automated Market Maker (AMM) features on Uniswap once V4 is live, eliminating the need to establish a new AMM design. Not only will the protocol make this possible, but it will also make it easier for developers to use features like concentrated liquidity in V3 and deep liquidity in general.

Highlighted Crypto News Today:

JPMorgan Upgrades Coinbase Rating from Underweight to Neutral

Dimon showed subtlety in his position on the rights of individuals when it came to investing.

The CEO may be critical of BTC, but JPMorgan is still a major participant in the crypto market.

The statements made by Jamie Dimon, CEO of JPMorgan, about Bitcoin in an interview with CNBC were widely reported. Even though Dimon has always been a vocal opponent of cryptocurrencies, his most recent remarks have ignited debates in the financial industry.

He showed some subtlety in his position on the rights of individuals when it came to investing decisions by drawing parallels between Bitcoin and cigarettes. Regardless of his own opinions, Dimon made it clear that he would support the rights of investors to buy Bitcoin.

Major Participant in Crypto Market

The impending sharp increase in Bitcoin’s price is the impetus for Dimon’s remarks. With a present value of BTC above $72,000, the cryptocurrency has gained 71% from the start of the year.

Larger macroeconomic considerations and the introduction of spot Bitcoin ETFs are in agreement with the rise. But Dimon still has his reservations about bitcoin due to its associations with illegal activity and its practicality.

Jamie Dimon may be critical of Bitcoin, but JPMorgan is still a major participant in the cryptocurrency market. The banking behemoth is on the list of approved participants in the spot Bitcoin ETF that BlackRock offers. This involvement allows JPMorgan to facilitate investors’ access to Bitcoin, demonstrating the complex interplay between the CEO’s personal beliefs and the bank’s business actions.

A wider acceptance of cryptocurrency in the banking industry is shown by the contrast between Dimon’s denial and JPMorgan’s action. Despite ongoing debates over the asset’s validity and use, institutions are starting to notice the need for exposure to cryptocurrencies. This development emphasizes the need to adapt to the changing tastes of investors and the dynamic character of investment options.

Highlighted Crypto News Today:

Cardano Surges After Weeks of Rangebound Trading: Can ADA Hit $1?

JPM said retail and institutional investors have been buying both gold and bitcoin this year.

The bank’s analysis shows a build-up in gold and bitcoin futures since February.

MicroStrategy’s bitcoin accumulation amplified the cryptocurrency's rally.

Institutional investors and individuals have been buying both gold and bitcoin {{BTC}} this year, not switching between the two, as some analysts have postulated, JPMorgan (JPM) said in a research report on Thursday.

Outflows from gold exchange-traded funds (ETFs) and a surge in bitcoin ETF inflows raised the possibility that investors were shifting from the precious metal into the cryptocurrency, the report said. The bank said it disagreed.

“Private investors and individuals have propagated both gold and bitcoin year-to-date rather than shifting from the former to the latter,” analysts led by Nikolaos Panigirtzoglou wrote.

“Beyond retail investors, speculative institutional investors such as hedge funds including momentum traders such as CTAs appear to have also propagated the rally by buying both gold and bitcoin futures since February, perhaps more heavily than retail investors,” the authors wrote.

The bank’s analysis shows a “sharp position build-up since February of $7b in bitcoin futures and $30b in gold futures.”

The risk of mean reversion looks high, the bank said, which means both assets could fall back toward their average levels.

Software developer MicroStrategy (MSTR), which has a corporate strategy of buying bitcoin, also played a part in amplifying the rally, the bank said. The company has bought over $1 billion of bitcoin this year, adding to the more than $1 billion acquired in the last quarter of 2023, the report noted.

“We believe the debt-funded bitcoin purchases by MicroStrategy add leverage and froth to the current crypto rally and raise the risk of more severe deleveraging in a potential downturn in the future,” the report said.

Read more: Bitcoin Is Unlikely to Match Gold’s Allocation in Investors’ Portfolios in Nominal Terms: JPMorgan

According to Foresight News, JPMorgan has adjusted its ratings for several Bitcoin mining companies. The bank has downgraded CleanSpark (CLSK) from 'overweight' to 'neutral', while upgrading Riot Platforms (RIOT) from 'underweight' to 'neutral'. JPMorgan continues to maintain an 'overweight' rating for Iris Energy (IREN) and an 'underweight' rating for Marathon Digital.

These adjustments in ratings reflect the bank's changing outlook on the performance and potential of these Bitcoin mining companies. Investors may use these ratings as a guide when making decisions about their investments in the cryptocurrency mining sector.