COINTURK NEWS – Bitcoin, Blockchain and Cryptocurrency News and Analysis

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The cryptocurrency market continues to face pressure due to a lack of positive developments. A report published by JPMorgan indicates that the U.S. Congress’s failure to make a clear decision regarding strategic cryptocurrency reserves has created uncertainty in the markets. The report emphasizes that it is particularly challenging to include smaller cryptocurrencies in reserves due to their high risk and volatility. Experts suggest that this ongoing uncertainty may negatively impact investor confidence.

Strategic Reserve Uncertainty Affects Markets

According to JPMorgan’s report, the indecision of the U.S. Congress regarding strategic cryptocurrency reserves has led to investor unease. Specialists note that volatility in cryptocurrency markets persists, and the lack of a clear regulatory framework increases risks.

It is particularly highlighted that including cryptocurrencies outside of Bitcoin $87,557 and Ethereum $2,164 in strategic reserves is difficult. High fluctuations and speculative movements distance such assets from being considered secure investment options. JPMorgan analysts believe that the markets are pricing in this uncertainty, predicting that volatility may continue in the coming period.

Central Banks Adopt Cautious Approaches to Cryptocurrency

The JPMorgan report also reveals that central banks worldwide are adopting a cautious stance regarding cryptocurrency reserves. The Swiss National Bank and the National Bank of Poland have expressed a preference for more stable assets such as gold in their reserves. It is noted that Bitcoin and other volatile assets do not align with long-term investment strategies.

In U.S. states like Montana, North Dakota, South Dakota, and Wyoming, proposals for strategic reserves were rejected due to high volatility risks. Financial circles believe that such reserves would be excessively sensitive to price fluctuations. A similar approach is observed in Singapore, where financial regulators indicated the high risks associated with the cryptocurrency market do not align with long-term investment strategies. The European Central Bank has also expressed reluctance to consider Bitcoin as a reserve asset, reflecting policymakers’ general skepticism toward cryptocurrencies.

The ongoing discussions regarding strategic reserves in the U.S. struggle to gain sufficient support, creating uncertainty in the markets. Investors are advised to carefully manage their portfolios, taking risk factors into account.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.



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