JPMorgan says Bitcoin is a risk indicator for investor sentiment
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.”
“If I shift my focus to the equity market where I’m a little bit spending much more of my time. It’s certainly an interesting environment where you see leadership from interactive media names like say Alphabet and pharmaceutical names like Johnson and Johnson,” Caffrey said. “Like one is risk off and one is perceived as risk on…I think it speaks to some of the confusion investors are attempting to navigate as we come into year-end.”
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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin Leverage Liquidations Spike in Early December 2025: An Important Lesson on Managing Risks in Unstable Markets
- Early December 2025 saw over $1B in leveraged Bitcoin bets liquidated as prices dropped below $86,000, with major exchanges reporting losses exceeding $160M each. - Sharp price swings and macroeconomic pressures like Japan's hawkish signals triggered cascading liquidations, exposing systemic risks in high-leverage crypto trading. - Institutional investors remained resilient amid the selloff, contrasting retail traders' margin calls and highlighting crypto ETF inflows as stabilizing factors during market
Hyperliquid's Growing Popularity and Trading Volume: Evaluating Its Potential as a Lasting DeFi Investment
- Hyperliquid dominates 2025 DeFi perpetuals with $2.74T volume, rivaling Coinbase via HyperBFT's 200k TPS and sub-second finality. - Market share dropped from 73% to 38% as competitors like Aster emerged, though Hyperliquid maintains 62-63% Perp DEX open interest. - Governance innovations (HIP-1/3) enable permissionless listings while 93% fee buybacks and $5B TVL boost HYPE token value. - Regulatory risks and $4.9M security loss highlight vulnerabilities despite BlackRock/Stripe partnerships and SEC ETF a
PENGU Token's Latest Price Rally and Technical Evaluation
- PENGU token surged past $0.0100 in late 2025, driven by Bitcoin rebound, whale accumulation, and Pudgy Penguins' project developments. - Technical analysis shows overbought RSI (73.76) and key support/resistance levels at $0.012-$0.0135, signaling potential volatility. - Market psychology blends speculative FOMO with strategic utility growth through "Pudgy Party" and NHL partnerships, though macro risks like Fed policy remain critical. - Analysts caution investors to balance short-term momentum with long
The PENGU USDT Sell Indicator and What It Means for the Stability of Stablecoins
- The 2025 PENGU USDT sell signal exposed algorithmic stablecoins' fragility, triggering systemic risks through reflexivity and eroded trust. - The U.S. GENIUS Act excludes algorithmic stablecoins from regulatory frameworks, pushing them into a legal gray area with limited consumer protections. - Technical flaws like smart contract vulnerabilities and oracle dependencies exacerbate instability, compounding market confidence erosion during crises. - Investors now prioritize fiat-backed stablecoins, CBDCs, a
Trending news
MoreCrypto prices
More
