According to analysts of one of the world’s largest investment banks, JPMorgan, bitcoin was the most stable asset during the global financial crisis in March.
A team of strategists at JPMorgan, led by Joshua Younger, published a report saying that if the bitcoin exchange rate did not correlate with other assets earlier, it has recently shown a strong correlation with stocks and other traditional assets.
“Although the correlation was almost zero in previous years, this indicator has grown significantly over the past few months. At the same time, the correlation level is higher for some assets (shares) and lower for others (us dollar, gold),” the report says.
Analysts also noted that bitcoin has proven to be good in March. They were surprised that the liquidity on major cryptocurrency exchanges has been maintained to a greater extent than in traditional markets such as us securities, gold and bonds, and even in currency markets.
“The liquidity of bitcoin fell very much during the peak market decline, but recovered much faster than the liquidity in traditional markets. The depth of the bitcoin market is already above the average for the year, while the liquidity of more traditional asset classes has not yet recovered, ” the report says.
Analysts briefly touched on the stablecoin market, noting that the fall in markets in March almost did not affect this asset class. At the same time, the cryptocurrency itself, according to the researchers, performed well during this “stress test”. The report notes:
“There is little evidence that bitcoin and other cryptocurrencies are safe assets. Their rate is significantly correlated with risky assets such as stocks. This shows that as an asset class they will survive, but rather as a means for speculation than as a means of exchange or preserving wealth.”
Recall that at the end of may, JPMorgan strategist Nikolaos Panigirtzoglou said that the current market price of the first cryptocurrency has finally equaled its internal value.