JPMorgan: Big Institution No Interest Invested In Crypto Assets

JPMorgan assesses that institutional investors are no longer interested in cryptocurrencies. (Photo; Doc. Unsplash)

JAKARTA The huge increase in the crypto market occurred in 2020 to 2021. Now the market is in a bearish phase triggered by the collapse of LUNA and the related companies starting in May 2022. Coupled with the bankruptcy of FTX which extended the bear market in 2022.

Cryptocurrencies are known to have high volatility. Therefore, JPMorgan strategist recently revealed that big players are no longer interested in investing in cryptocurrencies.

Reported by CryptoPotato, the most prominent rise in the cryptocurrency market began at the end of 2020 and lasted for about a year, seeing prices explode to new highs. Bitcoin, among other things, changed from under $10.000 to $69.000 in that period, to a trillion-dollar asset at the time.

In the bull run cycle, a number of large individual investors, as well as institutions, participated, including MassMutual, One River, and others. However, senior investment analyst JPM - Jared Gross - believes that this interest has been lost or never existed at the scene at all.

He blamed it on increasing volatility and argued that most institutions were relieved that they missed last year's rally for everything that happened in 2022 and a huge price drop.

"As an asset class, crypto is effectively absent for most large institutional investors. Its volatility is too high, and the lack of intrinsic returns that you can show makes it very challenging. Most institutional investors may hold a sigh of relief because they don't jump into that market and probably won't be doing it in the near future," Jared Gross told Bloomberg.

It's worth noting that JPM has always had a controversial relationship with the crypto industry. In fact, it's almost like using a bullish market to improve the market, which comes after MassMutual purchases, and a duty cycle to predict more gloomy developments.

Despite the massive decline throughout 2022, crypto industry players continue to make important developments related to their crypto projects. As did the developer Ethereum with its The Merger, and Cardano with its new upgrades.