Crypto is ‘poorest hedge’ for drawdowns in equities, JPMorgan analysts say

Analysts at American investment bank JPMorgan Chase have delivered another skeptical statement on Bitcoin (BTC), arguing that its current price is much higher than its fair value.

In a regular memo for investors, JPMorgan argued that cryptocurrencies like Bitcoin are an “economic side show” and the poorest hedge against a decline in equity prices, Reuters reports Friday.

The analysts said that the mainstream adoption of Bitcoin increases its correlation with cyclical assets, which makes it a less attractive asset for portfolio diversification:

“Crypto assets continue to rank as the poorest hedge for major drawdowns in equities, with questionable diversification benefits at prices so far above production costs, while correlations with cyclical assets are rising as crypto ownership is mainstreamed.”

In January 2021, JPMorgan strategists John Normand and Federico Manicardi argued that Bitcoin has been becoming a cyclical asset, opposed to a hedge against market stress.

A cyclical asset refers to stocks that follow a trend depending on

The post Crypto is ‘poorest hedge’ for drawdowns in equities, JPMorgan analysts say appeared first on Daily Truth Report • DailyTruthReport.com.

Click this link for the original source of this article.
Author: dev


This content is courtesy of, and owned and copyrighted by, https://dailytruthreport.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.

Visit our Discussion Forum at Libertati.com.

Follow us:
WP Twitter Auto Publish Powered By : XYZScripts.com