The cryptocurrency market is facing ongoing skepticism regarding the feasibility of a U.S. strategic crypto reserve, according to a recent research report by JPMorgan (JPM).
Analysts suggest that the lack of positive catalysts and uncertainty over congressional approval may keep the market under pressure in the near term.
JPMorgan analysts led by Nikolaos Panigirtzoglou noted concerns not only about Congress approving such a reserve, but also about the practicality of including smaller tokens beyond Bitcoin (BTC) and Ethereum (ETH). Given that these alternative cryptocurrencies are considered highly volatile and risky, it is uncertain whether they would be included in a government-backed reserve.
On Thursday, President Donald Trump directed his administration to establish a Bitcoin Strategic Reserve comprised of seized government assets. Trump also advocated for a stockpile of other crypto assets but did not specify which ones should be included, though he did mention XRP, Solana (SOL) and Cardano (ADA) earlier in the week.
However, JPMorgan’s report notes that similar discussions at the state level have largely failed to gain traction. States such as Montana, North Dakota, South Dakota, and Wyoming have all rejected proposals to include BTC in their strategic reserves, citing concerns about risk and volatility.
The skepticism extends beyond the US, as central banks around the world have largely rejected the idea of holding BTC in their reserves. The Swiss National Bank (SNB) and the National Bank of Poland have both rejected Bitcoin due to its speculative nature, opting for more stable assets like gold.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/jpmorgan-publishes-report-on-strategic-cryptocurrency-reserve-is-xrp-sol-ada-reserve-possible/