The latest Bitcoin rally to $4000 has been attributed by Bloomberg to a late response to JP Morgan’s announcement of its new native cryptocoin (JPM), but not everyone is buying it.
JPM Coin the Messiah?
Five days went by after the announcement from one of the largest banks in the world of its newly launched native stablecoin; JP Morgan shocked a significant section of the crypto community. But not everyone was surprised. If anything, the cryptocurrency market was not surprised and continued its lazy, languid descent and unstable little rises over the next 120 hours.
However, a sudden rally by Bitcoin and other top cryptos such as Ethereum, Ripple and BCH a few days ago have caused some influencers to point at JP Morgan’s ‘revolutionary’ announcement as the catalyst behind the recent surge. What else could be the reason?
“Bitcoin is getting a delayed boost from the announcement that JPMorgan has developed a digital coin to speed up payments between corporate customers,” Bloomberg tweeted.
JP what? Not JP Morgan’s powerful conglomerate name could save Bloomberg from an ensuing backlash on Twitter: Even JP Morgan’s shares declined by one per cent after the bank’s announcement of a new native stable coin. More important announcements such as Fidelity’s and Bakkt’s elaborate plans to bring Bitcoin to the forefront of the world’s trading attention did not even cause a positive spike no matter how little, so how is JP Morgan new coin responsible for the rally, after five days at that?
Well, the Arguments are Compelling.
According to a report published on Abacus Journal explaining why Bitcoin owes its latest rally to the financial giant’s announcement, JP Morgan is a bigger star than Bitcoin in the United States.
The bank has since shown its interest in blockchain technology for a long while, and has subsequently devoted its time to it, rolling out blockchain patents at almost every quarter. However, there has been no love lost between the institution and bitcoin; if its CEO Jamie Dixon’s view is taken as representative as the institution. After criticizing Bitcoin for years, the latest announcement is believed to be seen as an endorsement of cryptocurrencies by a trusted bank.
“Every adult with a bank account and a job knows who JP Morgan is,” a hedge fund source told Abacus Journal. “So the announcement of a native cryptocurrency brought interest to a renewed and fresh level that had been diminished throughout nearly all of 2018. My wife even asked me about it the day after it was announced.”