Revealed: JPMorgan is no more interested in the crypto market

Over the past few years, JPMorgan and other major traditional financial institutions have supported the crypto market, which is why the crypto market has grown in the past decade. However, there were some institutions that were skeptical about the volatility of the crypto market.

JPMorgan has always supported the cause of Crypto and has never doubted its potential. But as the market experienced a downward trend last year, JPMorgan’s strategy changed as well. He was recently in the news about registering his cryptocurrency wallet, and a few days later, the bank’s Head of Institutional Portfolio Strategy, Jared Gross, revealed that crypto assets don’t exist for large institutional investors.

JPMorgan’s change of position

One month ago, JPMorgan highlighted the regulation of Crypto due to the collapse of FTX. After the fall of FTX and Terra Luna, investors and users were more confused about the protection of their funds and investments, and JPMorgan wanted major financial institutions to pass crypto regulation that will provide a sense of security for their funds.

However, after a month, the company radically changed its position. In a podcast with Bloomberg, Jared Gross stated that traditional financial players have always been skeptical about entering the market and only a small fraction of them have done so.

They were very cautious about the stability and reliability of the crypto market, and events like FTX, Alameda, and Terra Luna proved them right. Gross added that looking at current cryptocurrency market sentiment, most of these investors are now happy with their decision not to enter the cryptocurrency market.

current market situations

The entire world is going through a period of recession, and all businesses, large and small, are affected. But the crypto market is the biggest blow of this financial crisis. Just a year ago, there was a lot of fuss surrounding the prices of major cryptocurrencies like Bitcoin and Ether when they were circulating around $60k and $3k, respectively.

Today, both are down 60% (BTC) and 70% (ETH), and according to CNBCthe crypto market has lost over $2 trillion in 2022. Additionally, major cryptocurrencies like BTC and ETH are down from their 2021 highs.

In such a devastating market, JPMorgan’s shifting stance doesn’t surprise many because many traditional financial institutions are now thinking of pulling their investment out of the market. Most of them are affected by the high interest rate imposed by central banks, inflation, poor stock market results and high energy prices.

This financial situation has also negatively affected the crypto market. Those institutions that did not enter the crypto market now breathe a sigh of relief. Also, those who are already in the cryptocurrency market will think twice before investing more. Those who are not will make sure not to enter the crypto market at all costs.

Future of cryptocurrencies

The recent crashes in the crypto market led JPMorgan to change its stance from being a major investor to questioning the reliability and stability of the market. However, this is not new to the cryptocurrency market. Many of the major financial institutions, such as Tesla and Wall Street banks, entered the market and left after a while.

The market is here despite the fact that many of the major investment bodies abandoned it, and it will continue to be so in the future as well. The cryptocurrency market is a decentralized form of finance, and as long as billions of people believe in it, the market will remain no matter how many institutions abandon it.