Bitcoin Adopted By JPMorgan 

Bitcoin Tailwinds

In comparison to the stock market, the momentum in the bitcoin price last week was muted.

The S&P 500 is a short hop from all-time highs, yet Bitcoin ended the week flat.

Can BTC get another leg up?

BTC has stalled over the last couple of weeks. Examining the daily charts, the inside bar bearish pattern last week indicated a potential leg lower.

That, in part, reflected the step change in sentiment and strong inflows into Ethereum in recent weeks.

However, in line with the Global M2 Money Supply indicator, the bearish pattern was reversed yesterday.

The bullish momentum comes on the back of several tailwinds in the fundamentals.

JPMorgan announced that they plan to offer clients financing against crypto ETFs.

Until now, JPMorgan has been the most prominent BTC sceptic in traditional finance.

While high-net-worth clients of JPMorgan could buy and sell BTC, the majority of JPMorgan clients have been prevented from buying Bitcoin ETFs due to risk considerations. That restriction has been lifted.

However, it doesn’t stop at being able to buy Bitcoin ETFs. JPMorgan has taken a step further, allowing clients to include ETFs alongside their other assets and borrow against them.

That will reduce selling pressure and put JPMorgan ahead of the curve on the lending side.

While it’s not borrowing against spot bitcoin, that will likely follow.

Institutional Adoption

The announcement by JPMorgan will not move markets; JPMorgan is simply catching up with its competitors, such as Goldman Sachs. However, it signals a continuation in the momentum and recognition of Bitcoin as a commodity asset from an institutional perspective.

The institutional adoption is underscored by the fact that investment advisors are now the primary holders of spot Bitcoin ETFs, and banks are also increasing their exposure to this asset class.

A theme and increasing trend in greater corporate and governmental acceptance that, in the longer term, will be beneficial for the price of bitcoin.

For now, BTC is in the midst of a consolidation phase, shifting in emphasis from short-term traders to long-term investors, with increased stability in price.

That shift may be evident in the increased trading activity in, and proliferation of, Bitcoin treasury stocks.

That trend will likely continue.

Indicators

The Percent of Addresses in Profit dipped to 95% last week before returning to 98% at the start of this week.

Bitcoin’s Active Addresses remained below 800,000 and broadly consolidated around 750,000. That consolidation was reflected in the Net Unrealised Profit/Loss (NUPL), which consolidated around 55%.

The Global M2 money supply suggests that there is more momentum to the upside this week.