While Bitcoin is stabilizing and investors expect the asset to hit the bottom, experts at JPMorgan are fueling audience interest by stating that the use of blockchain in finance will grow as the crypto sector grows. The bank said it not only wants to make sure this happens but also to start providing related services focused on cryptocurrency in the future.
Currently, the investment bank is using blockchain for some type of settlement, allowing its clients to provide a wider range of assets as collateral and to trade outside of market hours. In addition to derivatives trading, JPMorgan said it planned to expand tokenized collateral to include stocks, bonds, and other most attractive assets. This shows that the financial giants, which recently rejected and opposed blockchain and digital money, are trying to catch up and make their commissions, as they have done for decades.
The head of JPMorgan Blockchain Launch and Onyx Digital Assets says that since the development of blockchain, the bank has had the idea of becoming a bridge connecting institutional investors with DeFi platforms in the crypto economy. The bank is expected to provide the first test accesses for a number of clients to touch the DeFi sphere in the near future. In February 2022, JP Morgan also announced the opening of the Onyx by JP Morgan. The bank has valued the meta-universe as a trillion-dollar revenue opportunity from advertising and social commerce.
Although JPMorgan CEO Jamie Dimon is skeptical about Bitcoins and cryptocurrencies, he is optimistic about blockchain. "Decentralised finance and blockchain are real, new technologies that can be deployed in both public and private fashion, permissioned or not," Dimon said.
Last week, economists at JPMorgan published a report on the outlook for Bitcoin and cryptocurrencies, saying BTC has "significant growth potential." Whether this speaks to the real premise that the big players have already bought in well enough, and now it's just a matter of building up a social benchmark and new users wanting to touch the world of cryptocurrency, time will tell, but the existing industry is already sufficiently developed to do so.
While buyers of Bitcoin are actively looking for the bottom and are gradually returning to the market after the largest sell-off, buying back swing lows, the level of investor fear has dropped again to the value of 10 points - this year's low. The lower that figure is and the less the market reacts to it, the sooner Bitcoin will reach the bottom and start a new growth cycle, which could definitely push the asset to $80,000.
As for the short-term prospects, it is obvious that there are no buyers willing to buy at the highs, near the upper boundary of the sideways channel of $30,700.Bulls need to be active near $31,800 to develop the growth, but before that, we should try to return above $30,700, which has been repeatedly tested in the past few weeks. Only fixing above this level will quickly take the trading instrument back to $33,030, allowing investors to breathe out. A breakthrough of $29,850 and another consolidation below this level is likely to take the asset back to the low of $28,600, and there it can easily reach $27,660, where the large buyers were active last week.
As for the technical picture of Ethereum
The asset has touched the bottom and rebounded from it. The recent drop made investors nervous, as the trading instrument was one step away from reaching a new yearly low of $1,700. Currently, when the asset is fixed above $1,800, the target is located at the resistance of $1,899, and it will be difficult to pierce this level. It will be possible to speak about building an uptrend only after the breakthrough of $2,020, which will quickly return ETH to $2,146, and it will be a serious problem for traders there because it is very close to $2,295. Only fixing above this level may allow building an uptrend on the trading instrument with the prospect of reaching new highs in the area of $2,433 and $2,630. In the case, that the pressure on ETH persists, it is possible to buy the coin near support of $1,805. If this level is broken through, the trading instrument may collapse to $1,690, but it is unlikely that traders will buy the asset near the bottom. I advise counting on the new lows: $1,540 and $1,430, where the big players will be active again.
