The digital asset will be an internal cryptocurrency used to ease the flow of payments by the bank by instantly settling transactions between clients of its wholesale payments business.
On Valentines day, crypto traders and enthusiasts woke up to news that the biggest bank in the United States, JP Morgan Chase, will be issuing its own cryptocurrency known as the ‘JPM Coin’.
5 days later, and on the 19th of February, Bloomberg reported that the recent gains by BTC from $3,600 levels to its current value of around $3,900 was a delayed response frto the news of JP Morgan launching its own cryptocurrency.
Bloomberg Reports that the Current Bitcoin Rally Was due to the JPM Coin Announcement
The Bloomberg report stated the following:
Bitcoin is approaching $4,000 for the first time since the start of the year, as the largest cryptocurrency gets a delayed boost from the announcement last week that JPMorgan has developed a prototype digital coin that it plans to use to speed up payments between corporate customers.
Immediate Backlash from Crypto Twitter
As soon as Bloomberg tweeted the news, crypto enthusiasts responded by ridiculing the report. One user went as far as claiming the report was fake news. The tweet can be found below.
Perfect example of … Fake News
– Mr Coins ⚡️ (@CryptoDabbler) February 19, 2019
JP Morgan Launching a Crypto Legitimizes Bitcoin
According to the Abacus Journal, news of JP Morgan launching a cryptocurrency brought renewed interest in the investment of Bitcoin. Proof of this can be seen with the CME Group reporting a record number of Bitcoin futures contracts traded on the 19th of February.
One hedge fund source told Abacus Journal the following.
Every adult with a bank account and a job knows who JP Morgan is. 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. The huge bounce in volumes in Bitcoin and, for example, Bitcoin futures at the CME are indicative of the wave the announcement caused.
Another source was quick to predict that the JPM Coin might be the catalyst the crypto markets needed to bounce back.
It isn’t that far fetched to foresee a look back in six months and point to the $JPM coin as the catalyst that busted the bear market. Sentiment and narrative play a huge role in what remains a pretty small markets at this point. The JP Morgan news pushed prices higher across the board and those price increases were seriously validated by a surge in volumes.
Summing it Up
Many crypto enthusiasts were quick to dismiss the Bloomberg report that the current increment in value of Bitcoin to near $4,000 levels was a delayed response of the news that JP Morgan was launching its own cryptocurrency.
However, with news of a record day of trading for CME’s Bitcoin futures on the 19th of this month, and the input of hedge fund sources to the Abacus Journal, it is worth concluding that the JPM Coin might just have catalyzed renewed investor interest in BTC and other cryptocurrencies.
