Bitcoin’s price action and institutional engagement continue to dominate headlines as JPMorgan Chase deepens its involvement in cryptocurrency finance, while Standard Chartered issues a cautionary note about a potential market correction.
Bitcoin Price Cools Below $105K After All-Time High
Bitcoin, the world’s leading cryptocurrency, traded below $105,000 on Thursday morning, cooling off from its recent all-time high of $112,000. Despite this price pullback, bullish signals persist in the Bitcoin futures market, suggesting another potential upward surge. However, this volatility has triggered liquidations among highly leveraged traders.
Institutional Interest in Bitcoin Remains Strong
Bitcoin’s market dominance remains near record highs as institutional investors and corporations continue to back the asset. Inspired by companies like Strategy, which made early and large Bitcoin purchases, over 223 entities now hold $360 billion worth of BTC, according to data from Bitcoin Treasuries.
Major corporations like Tesla, Block, and now SolarBank, a Canadian solar energy firm, have adopted Bitcoin as a strategic treasury asset, further cementing its role in corporate finance.
JPMorgan Chase Accepts Crypto ETFs as Loan Collateral
In a landmark move, JPMorgan Chase, the largest U.S. bank by assets, has begun accepting Bitcoin and crypto-linked ETFs as collateral for loans. This policy applies to trading and wealth management clients and includes financing against leading cryptocurrency ETFs like BlackRock’s iShares Bitcoin Trust (IBIT), which currently holds $70.1 billion in assets.
The bank will also include cryptocurrency holdings in client net worth assessments, treating them equivalently to stocks, real estate, and luxury assets when determining loan eligibility.
Key JPMorgan Crypto Highlights:
- Launch of JPM Coin, a dollar-backed stablecoin, in 2020
- Jamie Dimon’s comments: “I’m not a fan of Bitcoin, but I defend your right to buy it.”
- Ongoing crypto investment partnerships with major firms like Coinbase
Regulatory Boost from Trump Administration and the Fed
The Trump administration’s deregulation of crypto banking has fuelled institutional adoption. In 2025, the Federal Reserve lifted restrictions on banks’ involvement in cryptocurrency and stablecoin services. The U.S. Treasury Office of the Comptroller also authorised national banks to offer custodial services for digital assets.
As a result, discussions among major U.S. banks about launching a unified cryptocurrency-backed stablecoin are reportedly underway, as revealed by The Wall Street Journal.
Standard Chartered Warns of a Bitcoin Market Correction
Despite bullish developments, Standard Chartered’s global head of digital asset research, Geoffrey Kendrick, warned investors about a looming correction. According to Kendrick, companies that followed Strategy’s lead and doubled their Bitcoin holdings in recent months—now totalling nearly 100,000 BTC—paid much higher average prices.
If Bitcoin dips below $90,000, around 50% of Bitcoin treasuries held by non-crypto public companies could go “underwater,” risking substantial paper losses and potential mass liquidations.
Market Risk Insights:
- A 22% drop in Bitcoin prices from average purchase levels could trigger liquidation
- High volatility could turn strategic investments into significant risks
- Bitcoin’s dual nature: Inflation hedge vs. treasury risk for businesses
Bullish Momentum vs. Volatility Caution
JPMorgan’s move to embrace cryptocurrency-backed loans marks a significant milestone in crypto’s path toward mainstream financial integration. However, Standard Chartered’s warning reminds investors and corporations of the inherent risks associated with Bitcoin’s volatility.
As the crypto market matures, strategic adoption by financial giants and regulatory support will likely drive long-term growth, but not without periodic corrections that test investor conviction.
