JPMorgan Embraces Bitcoin with New Lending Options as Standard Chartered Warns of Market Correction

Bitcoin’s futures market shows promising bullish signals despite a recent cooling in price, trading just below $105,000 after peaking at $112,000. Institutional interest remains strong, with Bitcoin dominance near record highs, driven by growing adoption among global companies and investors. Over 220 entities now hold Bitcoin in their treasuries, valued collectively at around $360 billion, including major players like Block, Tesla, and newcomer SolarBank.

JPMorgan Chase, the largest U.S. bank by assets, is advancing its crypto strategy by enabling customers to use Bitcoin and other leading cryptocurrency-linked assets as collateral for loans. This includes financing options against Bitcoin exchange-traded funds (ETFs). JPMorgan will also factor digital asset holdings into customer net worth evaluations, treating crypto similarly to traditional assets when granting credit, signaling a significant institutional endorsement of cryptocurrencies.

The bank’s history with digital assets dates back to 2020 with the launch of its stablecoin JPM Coin, and recent moves indicate deeper integration of Bitcoin in its offerings. Despite CEO Jamie Dimon’s cautious stance—he likened Bitcoin investing to smoking—JPMorgan is moving forward with allowing customers to buy Bitcoin and leverage crypto holdings, further legitimized by relaxed U.S. regulatory barriers on banking and digital asset trading.

However, Standard Chartered has issued a stark warning about Bitcoin’s volatility and potential market risks. Geoffrey Kendrick, the bank’s global head of digital asset research, cautioned investors about a possible correction that could severely impact companies holding Bitcoin at prices much higher than current levels. A drop below $90,000 could place nearly half of these firms’ Bitcoin treasuries “underwater,” risking forced liquidations and financial strain.

This caution underscores Bitcoin’s dual nature—as a store of value and hedge against inflation, but also as a volatile asset capable of turning strategic investments into risky gambles. While adoption among corporations grows, the potential for significant price swings remains a critical factor for investors and businesses leveraging Bitcoin in their financial strategies.

Source: Nairametrics