Bitcoin is once again spiking and has added about $200 to its price following its previous crash down into the low $9,000 range. The news seems to be sitting well with JPMorgan, one of the biggest bitcoin critics in history.
JPMorgan Is Switching Its Stance on BTC
In the past, Jamie Dimon – the CEO of JPMorgan Chase – has stated that bitcoin is a “fraud.” Dimon also compared the bitcoin craze to tulip bulbs, but now it appears the company is changing its sentiment surrounding the world’s number one digital currency by market cap. A new report composed by JPMorgan analysts has emerged that calls the currency “mostly positive,” saying that it has “longevity as an asset class.”
This is the exact opposite of what Goldman Sachs said in its recent client call about bitcoin and gold. In that call, the financial investment firm labeled bitcoin as a poor investment and said that it was not an asset class in any way, shape, or form.
The report by JPMorgan explains:
Though the [bitcoin] bubble collapsed as dramatically as it inflated, bitcoin has rarely traded below the cost of production, including the very disorderly conditions that prevailed in March.
Three months ago, the currency ultimately came crashing down and lost close to 70 percent of its value in just a matter of weeks. February saw the currency trading for well over $10,000, but by the end of the following month, the currency briefly struck the high $3,000 range, making many traders and investors wonder if 2018’s behavior was being repeated all over again.
However, that didn’t appear to be the case. Within a month, the currency had mostly managed to recover, hitting the $10K mark briefly in both early May and early June respectively, thereby – even for those quick moments – managing to recover all it had lost since the introduction of the coronavirus to the U.S. economy.
At the time of writing, the currency is trading for over $9,400, meaning it’s still down compared with where it was at the beginning of the week, though the asset is once again on a path towards recovery.
It Will Remain Mostly Speculative
The report further states:
There is little evidence of run dynamics, or even material-quality tiering among cryptocurrencies, even during the throws of the crisis… [Bitcoin] price action points to their continued use more as a vehicle for speculation than a medium of exchange or store of value.
The report is just another step in what appears to be a long-term flip for JPMorgan. It was announced last May that the financial firm had set up banking accounts for some of the country’s biggest crypto exchanges, including Coinbase and Gemini. In addition, it was ultimately revealed that CEO Jamie Dimon had been speaking secretly with Brian Armstrong – the CEO of Coinbase – for some time.