JPMorgan files its IBIT-linked note right as BTC tanks – Coincidence?

Key Takeaways

Did JPMorgan influence Bitcoin dip?

The timing of JPM’s IBIT-linked structured note, right after Bitcoin slid 30% and MSTR FUD, suggests a possible strategic move.

How is MSTR handling the market turmoil?

MSTR recently moved 58,390 BTC to Fidelity custody, signaling continued conviction and institutional-level security despite the Q4 sell-off.

Did JPMorgan play a role in Bitcoin’s recent dip? 

The bank filed a new product tied to BlackRock’s IBIT ETF right after Bitcoin [BTC] slid 30% and MSTR FUD hit the market. The timing raises questions: Was this filing strategically timed, or just a coincidence?

How JPM’s actions amplified the MSTR and Bitcoin unwind

Q4 defied expectations, playing out opposite to what traders anticipated. 

Notably, Bitcoin’s Open Interest (OI) hit $94 billion on the 7th of October amid bullish bets. Against this backdrop, earlier-opened positions were de-risked, triggering a major wipeout that was almost inevitable.

The market then tanked, sending BTC down 7.13% and sparking about $20 billion in liquidations in a single day.

Yet, the real catalyst behind the crash is still being debated, with JP Morgan now in the spotlight.

Source: X

Interestingly, a mix of factors is fueling this discussion.

At the center is MicroStrategy (MSTR), down 70%, leaving shareholders deep underwater.

However, this wasn’t a fluke.

This sell-off followed JPM’s MSCI proposal to exclude firms with “predominantly BTC” balance sheets.

And it didn’t stop there. Months before the drop, JPM raised margin requirements on MSTR positions from 50% to 95%. In simple terms, JPM made it much harder to hold MSTR on leverage, triggering forced unwinds.

In response, the market reacted sharply. 

The Fear & Greed Index hit an all-time low, LTHs started panic-selling, and ETF outflows broke records. In short, FUD took over.

In this setting, JPM now launching a Bitcoin product is being viewed as far from a coincidence.

JPM rolls out a 3-year note tied to BlackRock’s IBIT

Bitcoin’s growing adoption by major banks is usually seen as a milestone. 

In that vein, JP Morgan has launched a three-year structured note whose payout tracks the performance of BlackRock’s Bitcoin ETF (IBIT). Instead of holding BTC outright, investors buy the note and get exposure.

Think of it as a bank-wrapped, IBIT-linked Bitcoin bond. The market took it well.

CoinMarketCap data showed BTC went up more than 5% in the past 24 hours, reclaiming the $90k level after four straight red weekly candles.

Source: TradingView (BTC/USDT)

However, the timing didn’t go unnoticed. 

Bitcoin has already bled 20% in Q4, dropping to $80k and costing investors millions. Now, many are asking whether the crash was just market pressure or a strategic squeeze on MSTR via margin hikes and the MSCI proposal.

Either way, MSTR’s conviction in BTC hasn’t wavered. The firm recently moved 58,390 BTC ($5.1 billion) to Fidelity custody, a move seen as strategic for institutional-grade privacy and security.

In essence, JPM’s recent Bitcoin product launch has shifted the narrative. What looked like the end for MSTR just days ago is now part of a broader strategic play, pushing Bitcoin further into institutional hands.