tl;dr
JPMorgan has issued a warning against introducing additional leverage into the Bitcoin markets, citing potential correction and painful deleveraging. Meanwhile, MicroStrategy has confirmed amassing 205,000 Bitcoin in its corporate treasury, and the company's aggressive strategy in leveraged Bitcoin ...
JPMorgan has issued a warning against introducing additional leverage into the Bitcoin markets, citing potential correction and painful deleveraging. Meanwhile, MicroStrategy has confirmed amassing 205,000 Bitcoin in its corporate treasury, and the company's aggressive strategy in leveraged Bitcoin buys has drawn criticism from JPMorgan analysts. Despite this, evidence suggests that the present leverage has yet to reach alarming levels that could cause severe deleveraging during an imminent correction. MicroStrategy remains committed to its aggressive strategy and plans to continue adding to its Bitcoin holdings.
The American investment bank JPMorgan warns against introducing additional leverage into the Bitcoin markets, arguing that the potential correction would yield a painful deleveraging. The statement coincides with MicroStrategy confirming amassing 205,000 Bitcoin in its corporate treasury. The criticism from JPMorgan analysts comes at a time when MicroStrategy co-founder Michael Saylor is hailing the aggressive strategy as the best investment asset, despite concerns about leveraged Bitcoin buys. Despite the warning, the evidence suggests that the present leverage has yet to test alarming levels likely to cause severe deleveraging during an imminent correction.
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