JPMorgan Invites Ethereum and Blockchain Developers to Cooperate

According to a report published by Bloomberg, JPMorgan expressed concern about the recent fall in the Bitcoin exchange rate, and warned investors about a sharp increase in the liquidation of the BTC futures markets.

JP Morgan Hires Blockchain Developers

Against the background of the fact that the market capitalization of BTC remains above $1 trillion,

The bank has warned of the potential weakness of Bitcoin.

“Bitcoin futures markets have experienced a sharp liquidation over the past few days”, JPMorgan strategist Nikolaos Panigirtsoglu said in a research note. The bank added that momentum signals for Bitcoin will naturally fall from current levels.

The bank’s latest comments came as a surprise after JPMorgan gave a long-term price target of $130,000 per BTC in an earlier note, and mentioned that the decline in Bitcoin volatility is attracting institutional investors.

On Tuesday, the investment bank also noted a sharp decline in institutional flows into Bitcoin-related investment products.

“Over the past few days, the BTC futures markets have experienced a sharp liquidation, similar to the end of November last year. From here, the pulse signals will naturally fade over several months, given their still elevated level. It remains to be seen whether we will witness a repeat of these previous episodes in the current market environment, but flows into BTC funds appear weak,” the note reads.

But despite its reports and memos, the investment company, which, as you may recall, previously took a tough stance on Bitcoin and cryptocurrencies, is now joining organizations implementing blockchain technology.

After four years of calling cryptocurrencies a “scam”, the US investment bank is now actively hiring developers to develop Ethereum and blockchains.

The position was posted on Glassdoor, an American employment and recruitment website. It says that the company is looking for developers with experience in writing smart contracts, implementing business applications and verifying cryptographic protocols on the blockchain.

The announcement represents an interesting change in tone after years of treating Bitcoin as a scam. In 2017, current CEO Jamie Dimon said that crypto assets are “worse than tulip bulbs”. He added that he would fire any JP Morgan trader working with cryptocurrencies. But, as you can see, the views and opinions of bankers are not constant.

Is JP Morgan ready to join the crypto space?

The announcement could be a good signal that JP Morgan is finally joining the big wave of financial institutions using cryptocurrency and blockchain technologies. The bank said it would be ready to engage in cryptocurrency as soon as the firm receives sufficient institutional demand to attract attention.

JP Morgan also supported the idea of allocating 1% in BTC as a hedge fund, highlighting the reduced liquidity supply as corporations now accumulate large amounts of BTC. The Glassnode data shows how the supply of liquidity decreases as large holders and miners increase their positions in the market.

About 78% of all circulating BTC is lost or held, leaving less than 4 million BTC left to trade. One example of institutional hoarding is Grayscale, which holds more than $36 billion worth of Bitcoin. The asset manager recently reported total assets under management (AUM) of $50 billion, although this figure has changed due to price declines recently.

Source: https://decimal.news/jpmorgan-invites-ethereum-and-blockchain-developers-to-cooperate/

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