JP Morgan study: cryptocurrencies successfully pass stress test

Bank analysts examined the “first stress test” that tested digital assets.

Specialists from the largeston assets and credit operations of a US bank, JP Morgan, whose management is skeptical of cryptocurrencies, published a study on June 11 called:

“Cryptocurrencies tested their first stress test.”

This title is interesting becauseCryptocurrencies have gone through various tests, so this definition of the current situation only indicates that analysts are, perhaps, paying serious attention to digital assets for the first time. And this is even despite the fact that experiments were carried out within the organization with JPM coin tokens.

Be that as it may, the conclusions of the analysts are as follows:

• Bitcoin turned out to be the best financial one in terms of profitabilityproduct than “other asset classes” (thus JP Morgan refutes the opinion of Goldman Sachs analysts who claim that Bitcoin is not an asset class);
• Bitcoin, most likely, has lost its main meaning as a “means of saving”, which he had the last two years, and has become the same asset for trading as stocks;
• stablecoins show increased volatility of their price, but still maintain their status of “stable digital assets”;
• the outflow of funds from cryptocurrency exchanges and from cryptocurrencies was much smaller in volume than the scale of the flight of investors from classical financial assets in mid-March of this year.

JP Morgan Analysts noted sustainabilitythe structure of the cryptocurrency market in which Bitcoin has maintained its leading position. Meanwhile, the main forks of Bitcoin in terms of return on investment noticeably outperformed Bitcoin in this indicator, if we take the period from January 2019 to the current moment.

At the same time, JP Morgan noticed a high correlationBitcoin prices with the dynamics of Wall Street stock indices, at the same time emphasizing that the cryptocurrency market managed to maintain a high liquidity ratio. This contrasts very strongly with what happened to Wall Street, which needed the US Federal Reserve's emergency measures in the form of providing additional liquidity.

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