Key Takeaways
- JPMorgan’s Jack Caffrey sees Bitcoin as a risk indicator.
- The analyst finds it interesting when Bitcoin lags while gold rallies, questioning its “risk-free” status.
Jack Caffrey, JPMorgan’s portfolio manager, said Tuesday that Bitcoin is one of several risk indicators investors can watch to gauge market risk.
Speaking with CNBC’s Squawk Box this morning, he highlighted the recent divergence between Bitcoin and gold, noting that weeks of Bitcoin weakness alongside rallies in gold have raised questions about Bitcoin’s role as a “risk-free” asset.
The portfolio manager suggested multiple factors could explain the divergence, including whether “investors are looking at the prospect of a steeper yield curve supporting gold.”
JPMorgan has recently turned bullish on Bitcoin as a macro asset, introducing structured notes linked to Bitcoin ETFs. The bank plans to allow institutional clients to use Bitcoin and Ether as loan collateral by year-end.
Source: https://cryptobriefing.com/jpmorgan-bitcoin-risk-indicator-us-market/
