This Survey is PROOF!! Banks Are Worried About Crypto!

Earlier this month JP Morgan published a Report analyzing the crypto Market in The United States This is significant because JP Morgan is The largest U.S bank and has Historically been very skeptical of Crypto not only that but U.S investors Continue to be the largest contributors To the crypto Market as such the Findings in JP Morgan's report could Shed light on what will happen in the Crypto Market in 2023 so today I'm going To summarize jpmorgan's crypto report Explain what it says in simple terms and Tell you exactly what it could mean for The crypto Market in the coming year you Cannot miss this one folks Foreign To JP Morgan's report I want to give you A quick bit of background about the mega Banks relationship with crypto as some Of you will know JP Morgan's CEO Jamie Diamond is famous for being anti-crypto And he's been vocal in his opposition Since crypto went mainstream in 2017. However JP Morgan the bank has been a Bit more balanced especially during the Current crypto cycle it All Began in February 2020 when JPM was reportedly Considering merging its blockchain arm With ethereum Builder consensus the bank Has had conflicting views of crypto ever Since For example in May 2020 it recommended

That its clients stay away from crypto Shortly afterwards it announced that it Would be providing banking services for Coinbase and Gemini now this is Surprising given that JPM has also Allegedly unbanked many crypto entities For context it reportedly closed a bank Account of a crypto Mining Company in August 2021 and infamously closed the Bank account of uni swap founder Hayden Adams with no explanation there has Since been speculation that the order to Close Hayden's account came from the U.S Government In any case in February 2021 JPM said it Did not expect companies to add BTC to Their balance sheets like Tesla famously Did just two days later jpm's Co-president admitted that the mega bank Will get into Bitcoin quote at some Point now if that wasn't hypocritical Enough JPM also said that BTC was no Longer a hedge due to its increased Correlation with the stock market one Week later JPM sent a letter to clients Recommending they allocate one percent Of their portfolios to BTC as a hedge Throughout 2020 and 2021 JPM was also Frequently comparing BTC to gold one Month its analysts would say that Investors preferred BTC to gold and Another month they would say that Investors preferred gold to BTC Never mind that BTC being lumped in with

Gold technically makes it a hedge asset Now for what it's worth JPM apparently Still believes BTC will hit 150k in the Long term a prediction which assumes BTC Will compete with gold Jamie who has acknowledged that BTC Could yet 10x still says he will not Invest He also called cryptocurrencies quote Decentralized Ponzi schemes earlier this Year now despite the mega bank's bipolar Opinion of crypto the fact of the matter Is that it has been investing in the Industry and adopting it consider that It led an investment in consensus in April 2021 entered the metaverse earlier This year and made its first defy trade On polygon just last month Then on the 13th of December JP Morgan Published what appears to be its most Comprehensive crypto report to date it Is titled quote the Dynamics and Demographics of U.S household crypto Asset use and I will leave a link to the Full report in the description Now the report begins with a short Introduction which gives an overview of Crypto adoption in the United States What's awesome is that the authors refer To crypto assets as crypto something That you almost never see in these Institutionally oriented crypto reports The authors reveal that almost 15 Percent of the US population has used or

Invested in crypto at least according to Jpm's data they attribute this spike in Crypto adoption to the pandemic Specifically the resulting stimulus Which led to more investment The authors also reveal that their data Sample includes over 5 million of jpm's Customers and revealed that over 600 000 Of them made transactions related to Crypto they suspect that most customers Lost money in crypto but that they can't Be sure because they can only see Fiat Transfers in and out The authors then explained that they Structured their crypto report around Three questions First how has crypto adoption evolved Over time Second what are the demographics of People using cryptocurrencies and third How much Financial Risk did retail Investors have I'll quickly note that the third Question is a bit concerning that's Because some jurisdictions have been Considering Banning retail investment in Cryptocurrency if you watched our video About Federal Reserve Vice chair Michael Barr you'll know that this is something He seems to be in favor of in the United States Anyway the authors go on to reveal their Four key findings the first is that most Americans bought crypto for the first

Time when prices were spiking this is Not at all surprising and the authors Reveal that the pandemic price pump Managed to increase crypto adoption from 3 to 13 damn What's interesting is that the authors Used JPM data dating all the way back to 2015 in their analysis they confirm that They count all transactions to crypto Exchanges and platforms as being flows Into crypto and any transactions coming Back from these as being flows out of Crypto The authors also explained that they Only analyzed the most active customers At JPM before you ask most active means Any customers who engaged in five Transactions per month totaling at least One thousand dollars it's not clear Whether this threshold applies to crypto Transactions or transactions in general Regardless the result is what you see Here not surprisingly the number of new Crypto users has an almost perfect Correlation to btc's price action However I couldn't help but notice that This data is inconsistent with the Frequency of Google searches for crypto Related terms which fell off in early 2021. this suggests that Google's data Isn't all that good but let's not go Down that rabbit hole now what's funny Is that the authors say that crypto Accounts exhibit quote herd-like

Behavior a comment that made the crypto Headlines To their credit the authors acknowledge That the same herd-like behavior can be Seen in other asset classes but insist That the effect is more pronounced in Crypto The authors also reveal something Extremely bullish and that's that Between 2017 and mid-2022 there were Twice as many flows to crypto exchanges Than there were back to checking Accounts this suggests that crypto Investors are mostly buying and holding This is consistent with a report by the Bank for international settlements or Bis which found that more than 50 Percent of crypto holders become Long-term hodlers you can find out more About that report using the link in the Description on that note check out my Deals page if you want to make sure that Your crypto is being huddled securely That will also be down in the Description Now the second finding in JP Morgan's Report is that most crypto investors are Young male Asian and have high incomes I Can confirm this is accurate but I Wouldn't say that my income is all that High Jokes Aside the authors point out that This finding is consistent with other Crypto reports and surveys regarding the

Raw numbers twenty percent of Millennials hold crypto compared to 11 For Gen x's and four percent for baby Boomers Men are twice as likely to hold crypto As women on average and this is Especially true for the younger cohorts Men also invest twice as much in crypto As women When it comes to race and ethnicity the Representation is surprisingly equal at Around 20 percent for each group that is Of course except for the Asian cohort 27 Of whom have adopted crypto according to Jpm's data it's not entirely clear why This is but I reckon it's probably a Combination of factors Anywho the third finding in the report Is that most crypto investors don't Invest that much in crypto relative to Their income meaning less than one Week's worth of pay however 15 of crypto Investors invest a lot in crypto Relative to their income meaning more Than one month's worth of pay the Authors reveal that the median amount Invested in crypto between 2015 and 2022 Was around 600 US Dollars note that Median is not the same thing as average The average amount is likely much larger As averages are skewed by Extremes in This case very large Investments what You see here is the median amount of Money invested in crypto per income

Quartile the blue bars are the dollar Amount and the orange bars are the Relative income amount as you can see Richer crypto investors tend to put more Of their relative income into crypto This is where the good old correlation Is not causation rule comes in Some would argue that richer crypto Investors put more of their relative Income into crypto because they have More money whereas others would argue That they have a higher relative income Because they have more crypto I reckon It's probably a bit of both now as I Mentioned a few moments ago a small Percentage of crypto investors invest a Lot in crypto relative to their income What's Wild is that most of these crypto Investors fall into the fourth quartile I.E the wealthiest as well as the first Quartile I.E the poorest put differently The richest of the rich and the poorest Of the poor have similar risk profiles At least when it comes to investing in Cryptocurrency This reminds me of that bell curve meme Which shows low IQ people coming to the Same correct conclusion as high IQ People with average IQ people being Wrong as you can see however the risk Profiles between the first and fourth Quartile of earners disappears when you Expand the scope of the relative Investment

Those in the fourth income quartile are Much more likely to invest more than one Month of their salary into crypto which Makes sense the authors note that this Risk in the fourth quartile quote Reduces spillover risks because those Taking on this risk have higher levels Of liquidity in their accounts than Those in the first quartile now the way The authors word this suggests they Believe crypto should be limited to Wealthy investors At the same time though the author's Note quote individuals with high levels Of crypto exposure on balance may also Have greater ability to Bear Market risk This suggests that seasoned crypto Holders may be more resilient to Volatility regardless of their wealth Maybe I'm just seeing things though Anyhow the fourth finding in the report Is eerily similar to the first finding And that's that most crypto investors Invested when crypto prices were Rising The difference with this finding is that Those with lower incomes tended to get In at the worst possible time compared To those with higher incomes if I Understand correctly the authors managed To calculate the average price at which Crypto investors bought BTC Most crypto investors bought BTC at an Average price of roughly 44k richer Crypto investors bought BTC at just over

42k and lower income investors bought BTC at over 45k obviously this means That most crypto investors are over 60 In the red but the authors cautioned That this calculation assumes that Crypto investors only allocated to BTC It's more than likely that they also Allocated to altcoins in which case the Average loss is much much larger What's cool is that the authors Calculated the average BTC purchase Price not just across quartiles but Across different age cohorts as always Millennials bear the brunt of the losses Paying the highest average price of any Cohort Gen x's and the Baby Boomers weren't far Behind though naturally the authors also Found that educated crypto investors got In at a better average BTC price than Everyone else educated meaning having a College or graduate degree the authors Found that this Advantage stays even After controlling for all the other Factors such as income ethnicity and Gender nice to know that higher Education still helps with outcomes Now based on flows between crypto Exchanges and bank accounts the authors Believe that only around 13 of crypto Investors broke even only 20 of crypto Investors started buying when BTC was Below 20K and almost everyone else Bought when BTC was above 40K and

Now the final part of the report covers A few of the implications of its Findings oddly enough the authors warned That quote a small subset of the Population may have substantial Financial Risk to further crypto Market Declines This seems to be a not so subtle Reference to lower income crypto Investors the authors stress that retail Crypto investors in the United States Have experienced significant losses over The last year and tacitly admit that the Purpose of this report was to inform Regulators and politicians who are quote Concerned with investor protection The authors explicitly single out lower Income investors as being at risk and Claim that crypto may quote Merit a Differentiated policy approach to quote Protect investors and the economy now Call me crazy but I'm pretty sure that JP Morgan is calling for crypto to be Restricted to accredited investors That's code for rich people by the way Then again the mega Bank may just be Calling for there to be a test of Competence before retail investors are Allowed to buy or sell coins or tokens Fun fact this is a policy that was being Pushed by FTX and Alameda research Founder Sam bankman freed in his crypto Regulation recommendations more about Those in the description thank God that

Guy is finally Behind Bars Now in JP Morgan's defense it's easy to Understand why crypto would be a concern To existing institutions beside the fact That the mega Bank can see that money is Moving out of its accounts and not Coming back the adoption of crypto During the previous crypto cycle was Truly unprecedented recall that the Percentage of crypto holders spiked from Three percent to over 13 since the start Of the pandemic if we see another Forex Spike in crypto adoption in the next Cycle that would translate to a crypto Adoption rate of almost 60 percent at Least in the United States This would make crypto a very large Asset class one that could unironically Be large enough to lead to financial Stability risks The thing is that the financial system Is supposed to be resilient to shocks However the financial system has only Become less resilient as it has become More centralized This brings me to the big question and That's what JP Morgan's report means for The crypto Market well I suppose that Ultimately depends on whether it lands On the desk of a U.S regulator or Politician From where I'm standing it looks like That's who this report is really Directed at as I mentioned a few moments

Ago Mega Banks like JP Morgan aren't Happy about crypto adoption because it's Basically cutting them out of the Financial equation Some would say that their calls for Crypto regulations are an attempt to Slow this down but even they know crypto Adoption is inevitable that's why JPMorgan and other wolves on Wall Street Have been aggressively investing in Crypto over the last two years they are Hoping that they can preserve their Future profits by acquiring and Controlling key players in the crypto Industry be they crypto companies crypto Protocols or crypto projects if you Watched our video about ESG and Cryptocurrency you'll know that the Inability of Institutions to control BTC Is a big part of why they bash it so Often at the same time they're actually Fans of BTC precisely because it can't Be controlled and has a similar profile To Gold this is evident in JP Morgan's Own opinions Unfortunately the same can't be said for Proof of stake currencies many of which Could theoretically be taken over by a Large bank or asset manager at a Moment's notice make no mistake there is A huge incentive for these entities to Control what are effectively going to be The future payment rails I mean by this Point in time it should be obvious to

Everyone that crypto isn't going Anywhere the only debate is who will or Rather who should control these Cryptocurrencies should it be the Government should it be the central Banks should it be the asset managers or Should it be everyday people in theory Everyone should have a stake in the System but again in practice each entity Has an incentive to take as much of the Pie for itself as possible now as silly As it sounds the most important aspect Of this competition will probably come Down to to which of these entities has The hardest Diamond hands to my mind Calling for aggressive crypto Regulations is nothing more than an Attempt to crack the diamond hands of Retail investors who adhere to the core Values of cryptocurrency after all the Result of all this so-called consumer Protection is that prices crash and I Don't think that's a coincidence in some Then JP Morgan's crypto report reveals That it and other institutions in the Traditional Financial system are Starting to get nervous about the rate And resiliency of crypto adoption There's no doubt that this is extremely Bullish but it's going to take a long Time for this bullishness to be Reflected by crypto prices and now that This video is at an end you can find out When the current crypto bear Market

Could end by using the link in the Description Foreign [Music]

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