Cryptocurrencies jump as JP Morgan announces a new coin
On Friday, the cryptocurrency universe received positive news. Before the US market opened, reports said that JP Morgan was preparing to launch its own cryptocurrency. The currency will be known as the JPM Coin and is expected to be launched within a few months.
The currency will not be available to retail investors. Instead, the bank will use the concept of blockchain to create the currency, which will then be used for large international fund transfers. This concept will solve a very major problem that exists today. When international companies transfer funds globally, it usually takes a few days. This is because the funds have to pass through a number of firms such as intermediaries. Therefore, the coin will reduce the lag from days to just minutes.
This news is very important because of what JP Morgan is to the financial world. It is one of the largest banks with a market capitalization of more than $350 billion. It has assets of more than $2.6 trillion. Every day, the bank transacts more than $6 trillion for large companies. Its entry to the blockchain industry marks the first time a major US institution has done this. It is also a surprise because JP Morgan’s CEO has been one of the major critics of the currencies. Each coin will be worth a dollar, making it a stablecoin.
The BTC/USD pair moved to a high of 3725, which is the highest level since mid-January. Today, the pair moved slightly lower to 3662 as traders internalize the news of the new JP Morgan coin. On the four-hour chart, the pair’s price is along the 50% Fibonacci Retracement level. The price is also above the 21-day EMA. In the short term, the pair could remain stagnant as traders consider the implications of the news.