Bitcoin’s futures market is displaying bullish signals despite a recent price cooling, indicating that the top cryptocurrency may be preparing for another leg upward, even as leveraged traders are being wiped out in liquidation.
The asset class traded below $105K on Thursday morning amid evolving dynamics in the digital space, cooling from its $112K all-time high.
The pioneer asset class dominance is still near its record high as institutional investors stick with Bitcoin.
Many global businesses followed Strategy’s lead a few years ago by amassing a substantial amount of Bitcoin. According to data from Bitcoin Treasuries, 223 entities currently own Bitcoin, with a total value of $360 billion.
Giants like Block and Tesla have embraced this approach as well. Canadian solar energy company SolarBank recently declared it would be adding Bitcoin to its treasury, joining the increasing number of publicly traded companies hoarding the cryptocurrency.
JPMorgan Chase, the largest American bank by assets, will allow trading and wealth management customers to use Bitcoin and other top cryptocurrency-linked assets as loan collateral. The bank will also allow financing against cryptocurrency exchange-traded funds (ETFs).
The world’s most valuable bank will consider customers’ cryptocurrency holdings when evaluating their net worth. Digital assets are regarded the same as traditional ones when determining how much a client can borrow against their assets. For some of its customers, JPMorgan is among the US banks investing in cryptocurrency initiatives.
The Tier 1 American bank introduced the dollar-pegged stablecoin JPM Coin in 2020, and as of 2024, Jamie Dimon, the CEO of JPMorgan, announced that the bank would soon allow customers to buy Bitcoin. Moreover, Dimon reiterated his skepticism over the asset class, comparing investing in Bitcoin to smoking.
JPMorgan initiates with iShares Bitcoin Trust, the largest US spot Bitcoin ETF with net assets of $70.1 billion, according to Sosovalue.com.
President Donald Trump relaxed barriers on banking and digital asset trading
The Federal Reserve lifted restrictions, which were previously put in place in 2025, stifling banks from engaging in stablecoin and cryptocurrency activities.
The US Treasury Office of the Comptroller has confirmed that banks are now permitted to manage clients’ custodial assets in cryptocurrency.
The Wall Street Journal revealed that discussions among US banks in the preliminary stages of creating a cryptocurrency stablecoin were happening in those months as well.
Standard Chartered warns of BTC Market Correction
Geoffrey Kendrick, Standard Chartered’s global head of digital asset research, warned of an impending market correction on the pioneer digital asset.
The market analyst noted in a letter to investors that businesses copying Strategy have doubled their Bitcoin holdings in the last two months, bringing them to almost 100,000 BTC.
He claims that the issue is that these businesses purchased at average prices significantly higher than Michael Saylor’s.
Therefore, if the price of Bitcoin drops below $90,000, about half of the treasuries held by 61 public companies not related to the cryptocurrency would be “underwater.” Geoffrey Kendrick estimated that a 22 percent drop in the price of Bitcoin from average purchase prices could result in massive liquidations.
Bitcoin’s volatility is well known to investors, and while some see it as a store of value and a hedge against inflation, it can also put companies that use it as a treasury asset at risk.
The British-based bank cautions serve as a reminder that this approach is not without consequences. Due to its inherent volatility,
Bitcoin has the potential to turn a highly profitable and strategic investment into a risky wager, particularly if the market undergoes a significant correction
