The encryption market is skeptical in American strategic reserve formation: Jpmorgan

JPM (JPM) said in a research report on Wednesday that cryptocurrency markets are likely to remain under pressure on the short term due to the lack of positive stimuli and doubt whether Congress will agree to an American strategic encoding.

“There are no doubts about the Congress’ approval of such a strategic coding reserve, but also on the feasibility of including small symbols outside Bitcoin (BTC) And the fragrance (Eth“Given their high risks and fluctuations, analysts led by Nikolaos Banesertegoglu wrote” given their high risks and fluctuations.

On Thursday, President Donald Trump ordered his administration Create a bitcoin strategic reserve To hold the assets that the government seized. He also called for a stock of other encryption origins, without naming those that should be included Although mentioned XRP, Solana (Sol) and Cardano (ADA) earlier in the week.

Jpmorgan noted that talks on Bitcoin in the strategic reserves at the state level also failed to obtain support.

The report said that the states that include Montana, Northern Dakota, South Dakota and Wyoungg, all of which rejected such proposals due to “risks and fluctuating” fears.

Central banks in the world warn at the same amount to include the largest encrypted currency in the world in their reserves.

Jpmorgan noted that the Swiss National Bank (SNB) and the National Bank of Poland refused to add bitcoin to their reserves, and instead they choose more stable assets such as gold.

Singapore also rejected the idea. “Crypting currencies are not in line with [the bank’s] Long -term investment strategies due to its speculative nature.

The report added that the European Central Bank (ECB) criticized the idea of ​​bitcoin as a backup asset, and this indicates the wider doubts between policy makers about the use of encryption as backup assets.

Read more: Bitwise says Trump’s strategic encryption is positive, and the market has erred.