Share this article
U.S. Banking Crisis May Be Vindication for Crypto Ecosystem: JPMorgan
Bitcoin rallied in tandem with gold as they are both viewed as hedges to a catastrophic scenario, the report said.
By Will Canny
Updated May 9, 2023, 4:12 a.m. Published Apr 12, 2023, 9:04 a.m.
Despite recent regulatory headwinds, the cryptocurrency market has rallied strongly over the last month, with bitcoin outperforming, JPMorgan (JPM) said in a research report last week.
The bank notes that bitcoin, the largest cryptocurrency by market cap, gained at the same time as gold because both are viewed as hedges to a “catastrophic scenario.”
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Recent problems in the banking sector also “exposed the weaknesses of the traditional financial system given bank’s maturity mismatch is susceptible to bank runs,” analysts led by Nikolaos Panigirtzoglou wrote.
“The U.S. banking crisis and the intense shift in U.S. bank deposits to U.S. money market funds is viewed by crypto supporters as a vindication of the crypto ecosystem,” the report said.
Bitcoin has also benefited from the launch two months ago of Bitcoin Ordinals, which some argue will drive up transaction fees and increase miners’s revenues, the note said.
JPMorgan says the most important support for bitcoin has come from rising investor focus about next year’s halving event, scheduled for April 2024, when mining rewards are cut in half.
This would mechanically double bitcoin’s production cost to around $40,000, creating a positive psychological effect,” because historically, BTC’s production cost has acted as an effective lower boundary to its price, the report added.
Read more: U.S. Banking System Turmoil Has Spurred Bitcoin Outperformance: Coinbase
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Sky's Keel Starts $500M Investment Campaign to Boost RWAs on Solana
The Tokenization Regatta aims to allocate funds and support to projects bringing tokenized real-world assets to the Solana network.
What to know:
- Keel has launched a $500 million campaign to attract real-world assets (RWAs) to the Solana network.
- The initiative, called the Tokenization Regatta, offers capital allocation and support to selected projects issuing tokenized assets on Solana.
- More than 40 institutions have shown interest, Keel contributor Cian Breathnach said.
Top Stories
