JPMorgan rises 2% pre-market: Wall Street giant's strategic choices between crypto and policy

JPMorgan’s pre-market gains on January 13 expanded to 2%. Behind this seemingly simple number lies a complex game on multiple levels by Wall Street’s largest asset bank. From a 2.4% decline on January 12 due to the Trump administration’s credit card interest rate policy to the subsequent rebound, the rapid shift in sentiment within a day reflects not only adjustments in policy expectations but also strategic deepening in the crypto space and a reassessment of macroeconomic conditions.

From Decline to Rebound: JPMorgan’s One-Day Turnaround

January 12 Pressure and January 13 Relief

On January 12, JPMorgan fell 2.4% following the Trump administration’s proposal to cap credit card interest rates at 10%. This policy directly threatened the bank’s interest income and posed a challenge to financial profitability. However, by pre-market on January 13, JPMorgan’s stock rebounded by 2%, indicating a swift change in market sentiment.

This rebound likely results from several factors working together: firstly, the market may be reassessing the actual implementation difficulty of Trump’s policy; secondly, JPMorgan’s strategic moves in other areas are gaining renewed recognition; thirdly, adjustments in macroeconomic outlooks are providing new support for financial institutions.

Crypto Strategy Becomes a New Growth Driver

Strategic Significance of JPM Coin and Canton Network

According to recent reports, JPMorgan announced the expansion of JPM Coin onto the Canton network, which has attracted widespread attention in the crypto community. This is more than just a technical integration; it signifies Wall Street’s deep recognition of blockchain technology.

JPMorgan’s crypto initiatives include:

• Deploying JPM Coin on the Canton network as an interbank dollar settlement tool
• Enabling direct staking of BTC and ETH via the Onyx blockchain platform
• Offering BTC ETF collateralized lending to private banking clients
• Collaborating with other financial institutions to establish a complete crypto asset custody and settlement chain

These actions indicate that JPMorgan is transforming crypto assets from “risky assets” into “strategic assets.” As the largest bank in the U.S. by assets, every step it takes in the crypto space sets a benchmark.

Institutional-Scale Crypto Business

Notably, recent reports indicate JPMorgan has begun offering direct staking services for BTC and ETH to select institutional clients, beyond just ETF shares. This suggests that crypto assets are gradually integrating into traditional financial credit systems. With Basel III regulations officially taking effect on January 1, 2026, Bitcoin-backed loans have gained a regulatory foundation.

This development signifies that crypto assets are evolving from “speculative tools” into “financial infrastructure.” JPMorgan’s series of actions signals that trillion-dollar “mainstream armies” are collectively entering the crypto lending business.

The Complexity of the Macro Environment: Opportunities and Risks Coexist

Federal Reserve Policy Expectations Shift

JPMorgan has revised its previous forecast of a Fed rate cut in 2026, now expecting the Fed to raise interest rates by 25 basis points in Q3 2027. This change reflects strong U.S. employment data and persistent inflation.

From a market perspective, this shift has two implications: on one hand, robust employment supports economic fundamentals, which is positive for financial profitability; on the other hand, the delayed rate cut outlook means higher interest rates will persist longer, putting pressure on bond markets and certain risk assets.

Shadows of the Fed’s Independence Risks

JPMorgan’s trading division recently stated that the Trump administration’s impact on the Fed’s independence poses a short-term threat to the U.S. stock market. News of potential criminal investigations into the Fed caused futures and the dollar to decline, with funds flowing into safe-haven assets like gold.

This highlights an important market uncertainty: the influence of political factors on financial markets. While macroeconomic and corporate fundamentals support a bullish stance, risks to the Fed’s independence act as a ceiling on market optimism.

Deep Market Logic

Wall Street’s Dual Bets

The 2% pre-market rise of JPMorgan actually reflects two bets on Wall Street:

First, betting on the mainstream adoption of crypto assets and blockchain technology. Through projects like JPM Coin and Canton network, JPMorgan is building future competitiveness. When traditional finance and crypto assets truly merge, early movers will gain a first-mover advantage.

Second, betting on economic resilience and the profitability of financial institutions. Despite policy uncertainties, strong employment data and solid corporate fundamentals continue to support the long-term outlook for financial firms.

Market Sentiment Shift

The rapid transition from a decline on January 12 to a rebound on January 13 indicates that market participants are reassessing risk and opportunity balances. Although Trump’s policies pose pressure on bank interest income, the market seems to believe that the actual impact of these policies may be less severe than initially expected.

Meanwhile, JPMorgan’s active crypto initiatives are seen as positive signals. This shows that Wall Street is not only adapting to change but actively shaping the future.

Key Future Focus

JPMorgan’s series of actions suggest several potential directions:

First, crypto assets may be shifting from “risky assets” to “strategic assets.” When giants like JPMorgan start offering BTC-backed loans, it indicates that crypto assets are gaining legitimate status within the financial system.

Second, macro policy uncertainties may continue to influence short-term market sentiment, but the long-term trend still points toward financial innovation and integration with crypto assets.

Third, JPMorgan’s crypto initiatives could trigger other financial giants to follow suit, forming a “mainstream army” entering collectively. Recent reports indicate that Wells Fargo, BNY Mellon, and others are already active in similar areas.

Summary

JPMorgan’s 2% pre-market increase may seem simple, but it reflects Wall Street’s complex balancing act among crypto, policy, and macroeconomic factors. The bank is building future competitiveness through innovative products like JPM Coin and BTC-backed loans. Despite short-term uncertainties caused by political and policy factors, JPMorgan’s strategic crypto deployment and optimistic outlook on economic fundamentals are becoming new market highlights.

For the entire industry, JPMorgan’s actions mark an important turning point: the integration of traditional finance and crypto assets has moved from concept to reality, and this process is accelerating. The future financial landscape may be dominated by institutions capable of mastering both traditional finance and crypto technology.