Tag Archives: JPMorgan

Bitcoin hammer blow as JPMorgan analysts back rival crypto to ‘outperform BTC’

Bill Gates discusses Bitcoin in 2018

Last year, Ethereum (ETH) crashed below $ 100 (£72) in spectacular style having reached a peak of nearly $ 1,200 (£863) in early 2018. But over the last 12 months, the tide has turned and the cryptocurrency has risen beyond its previous peak to hit a series of all-time highs – including a record yesterday of $ 3,456 (£2,487). Its gains are impressive when compared to Bitcoin (BTC), which too has hit all-time highs this year, but ETH has “outperformed” BTC by a factor of three-to-one – with a market cap roughly one third its size.
Last week, JPMorgan published a report entitled ‘Why is ETH outperforming?’ where analysts at the firm’s Fixed Income Strategy for the US predicted more of the same.

They wrote: “In recent days, one of the more interesting developments in cryptocurrency markets has been the outperformance of ETH relative to other tokens.”

Noting that Bitcoin is “more of a crypto commodity than a currency,” experts stated that “ETH is the backbone of the crypto-native economy and therefore functions more as a medium of exchange”.

Many investors, including billionaire Mark Cuban, claim that Ethereum’s decentralised, open-source blockchain with smart contract functionality will trump Bitcoin because it is “easier to use”.

The price of Ethereum has hit all-time highs recently

The price of Ethereum has hit all-time highs recently (Image: GETTY)

Cryptocurrencies continue to interest investors

Cryptocurrencies continue to interest investors (Image: GETTY)

Blockchain technology enables the existence of cryptocurrency and a smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.

This allows for trusted transactions and agreements to be carried out without the need for a central authority, legal system, or external enforcement mechanism.

Bitcoin – the largest and most widely used cryptocurrency – does not currently offer support for complex smart contracts.

Analysts at JPMorgan asserted that “owning a share” of this technology “is more valuable” and therefore “ETH should outperform BTC over the long run”.

The report adds: “Both BTC and ETH markets experienced a comparable liquidity shock earlier this month which triggered a comparable de-levering of their perspective derivatives market in subsequent days.

READ MORE: Bitcoin warning: Elon Musk’s Dogecoin ‘control’ will ‘not be tolerated’ as DOGE surges

Mark Cuban has backed Ethereum

Mark Cuban has backed Ethereum (Image: GETTY)

“But ETH spot market depth has recovered quicker and if anything liquidity conditions on some exchanges is better than prior to the event.

“High-frequency cash basis pricing reveals a much smaller impact in ETH markets despite optically comparable net liquidations.

“Open interest data also suggests that the other side of these trades was easier to source.”

And they expect much of the same in the future.

The report continues: “Higher turnover on the public ETH blockchain means a noticeably higher fraction of those tokens can be considered highly liquid, further blunting the impact of futures liquidations.

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Ethereum has unique features

Ethereum has unique features (Image: GETTY)

“In the case of Ether versus Bitcoin, there is evidence of more resilient liquidity, less reliance on derivatives markets to transfer and warehouse risk, and more durable underlying demand base – for now at least.

“In combination with the continued growth of decentralised finance and other components of the Ethereum-based economy, this suggests some technical but occasionally important bullish tailwinds versus bitcoin.

“ETH valuations may be less dependent on levered demand than BTC, a technical but occasionally important tailwind going forward.”

Britain’s Financial Conduct Authority (FCA) has previously warned against investing in crypto.

Bitcoin continues to be worth more

Bitcoin continues to be worth more (Image: GETTY)

It stated: “If consumers invest, they should be prepared to lose all their money.

“Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering.

“Significant price volatility, combined with the difficulties valuing [Bitcoin] reliably, place consumers at a high risk of losses.”

Express.co.uk does not give financial advice. The journalists who worked on this article do not own cryptocurrency.

Author:
This post originally appeared on Daily Express :: Finance Feed

JPMorgan Chase CEO speaks out to defend voting rights in response to Georgia law

Jamie Dimon, CEO of JPMorgan Chase, on Tuesday voiced his support for voting to be “accessible and equitable,” less than a week after the GOP-controlled Georgia legislature passed a swath of new voting laws that limit some voter access.

In a statement provided to CNN[1], Dimon said that JPMorgan Chase employees “span the United States.”

“And as state capitals debate election laws, we believe voting must be accessible and equitable,” he added.

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“We regularly encourage our employees to exercise their fundamental right to vote, and we stand against efforts that may prevent them from being able to do so,” Dimon said.

CNN noted that Dimon did not specifically mention Georgia in his statement.

“Voting is fundamental to the health and future of our democracy,” Dimon added. “We are a stronger country when every citizen has a voice and a vote.”

Georgia Gov. Brian KempBrian KempThe Hill’s Morning Report – Biden officials brace for worst despite vaccine data Democrats seize on voting rights; GOP cries foul Georgia GOP governor in quarantine after COVID-19 exposure MORE[3][4][5][6][7][2] (R) signed the far-reaching election bill last Thursday. The bill limits the use of ballot box drop boxes and sets a voter ID requirement in place among other restrictions.

The bill has been criticized by voting advocates as being racist as initial drafts included barring early voting on Sundays, which Black churches have historically used as a day to get churchgoers to the polls. The Sunday ban was later dropped by lawmakers.

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Voting activists have called on several major companies to come out against Georgia’s new voting laws, mainly focusing on companies headquartered in Georgia, such as Coca-Cola, Delta Air Lines and Home Depot. Though several have voiced support for voter access, none have come out against the voting laws in Georgia so far.

Coca-Cola’s apparent inaction has led to calls for boycotting its products[8] by voting rights activists. AME Sixth Episcopal District said last week that it would be calling for a statewide boycott of Coca-Cola products in Georgia.

Democrats have also condemned the bill, painting the legislation as a direct reaction the GOP’s recent losses in the Peach State. President BidenJoe BidenThe Hill’s Morning Report – Biden officials brace for worst despite vaccine data Congress looks to rein in Biden’s war powers Democrats seize on voting rights; GOP cries foul MORE[10][11][12][13][14][9] became the first Democratic candidate to win the state in nearly 30 years when he won in November. Democratic Sens. Raphael WarnockRaphael WarnockSunday shows: Biden’s border woes, gun control dominate SNL’s Kamala Harris hosts Ted Cruz for ‘Unity Seder’ Senator scolds Georgia governor: ‘He knows better’ MORE[16][17][18][19][20][15] and Jon OssoffJon OssoffJuan Williams: The GOP’s big lie on voting rights Georgia law makes it a crime to give food, water to people waiting to vote Biden: Georgia law is ‘Jim Crow in the 21st century’ MORE[22][23][24][25][26][21] also won in their respective run-off elections in January against former GOP senators Kelly LoefflerKelly LoefflerGeorgia voting overhaul provokes fury from Democrats Five big takeaways on Georgia’s new election law Schumer blasts Georgia voting measure: ‘Despicable! We will act’ MORE[28][29][30][31][32][27] and David PerdueDavid PerdueFive big takeaways on Georgia’s new election law Schumer blasts Georgia voting measure: ‘Despicable! We will act’ Georgia passes far-reaching voting measure MORE[34][35][36][37][38][33].

References

  1. ^ CNN (www.cnn.com)
  2. ^ Brian Kemp (thehill.com)
  3. ^ Brian Kemp (thehill.com)
  4. ^ The Hill’s Morning Report – Biden officials brace for worst despite vaccine data (thehill.com)
  5. ^ Democrats seize on voting rights; GOP cries foul (thehill.com)
  6. ^ Georgia GOP governor in quarantine after COVID-19 exposure (thehill.com)
  7. ^ MORE (thehill.com)
  8. ^ boycotting its products (thehill.com)
  9. ^ President Biden (thehill.com)
  10. ^ Joe Biden (thehill.com)
  11. ^ The Hill’s Morning Report – Biden officials brace for worst despite vaccine data (thehill.com)
  12. ^ Congress looks to rein in Biden’s war powers (thehill.com)
  13. ^ Democrats seize on voting rights; GOP cries foul (thehill.com)
  14. ^ MORE (thehill.com)
  15. ^ Raphael Warnock (thehill.com)
  16. ^ Raphael Warnock (thehill.com)
  17. ^ Sunday shows: Biden’s border woes, gun control dominate (thehill.com)
  18. ^ SNL’s Kamala Harris hosts Ted Cruz for ‘Unity Seder’ (thehill.com)
  19. ^ Senator scolds Georgia governor: ‘He knows better’ (thehill.com)
  20. ^ MORE (thehill.com)
  21. ^ Jon Ossoff (thehill.com)
  22. ^ Jon Ossoff (thehill.com)
  23. ^ Juan Williams: The GOP’s big lie on voting rights (thehill.com)
  24. ^ Georgia law makes it a crime to give food, water to people waiting to vote (thehill.com)
  25. ^ Biden: Georgia law is ‘Jim Crow in the 21st century’ (thehill.com)
  26. ^ MORE (thehill.com)
  27. ^ Kelly Loeffler (thehill.com)
  28. ^ Kelly Loeffler (thehill.com)
  29. ^ Georgia voting overhaul provokes fury from Democrats (thehill.com)
  30. ^ Five big takeaways on Georgia’s new election law (thehill.com)
  31. ^ Schumer blasts Georgia voting measure: ‘Despicable! We will act’ (thehill.com)
  32. ^ MORE (thehill.com)
  33. ^ David Perdue (thehill.com)
  34. ^ David Perdue (thehill.com)
  35. ^ Five big takeaways on Georgia’s new election law (thehill.com)
  36. ^ Schumer blasts Georgia voting measure: ‘Despicable! We will act’ (thehill.com)
  37. ^ Georgia passes far-reaching voting measure (thehill.com)
  38. ^ MORE (thehill.com)

[email protected] (Joseph Choi)