Even JP Morgan seems to have surrendered to evidence: the price of Bitcoin is rising and this will make it an increasingly attractive asset in the market.
In a recent report the US bank had agreed in the end that institutional investors would prefer Bitcoin to gold. According to this report, the capitalization of BTC itself would have to grow 10 times to meet investor demand. This is an admission of how much Bitcoin has become a desired asset.
But it was not always so. In fact, JP Morgan’s CEO, Jamie Dimon, called Bitcoin a scam in 2017. He also prohibited his employees from trading with Bitcoin for two reasons:
„It’s against our rules and they’re stupid“.
Bitcoin was defined:
„Worse than tulip bulbs, it will not end well. Someone will get killed“.
How did it go afterwards? These statements are dated September 2017, Bitcoin was worth about $3,000.
In December it would have been worth $20,000 and then collapsed in January 2018. Since then Bitcoin has started a path of ups and downs culminating in $3,400 in December 2018, followed by $13,000 in June 2019, and then experienced the March 2020 crash that brought it back under $4,000.
Since March 2020, Bitcoin has started a climb culminating in these days with the price at a pace of $19,000, very close to the all-time record.
But Jamie Dimon hasn’t changed his mind.
Just a few days ago in a speech, JP Morgan’s CEO commented:
„Bitcoin is not my cup of tea.“
An expression that reveals once again how the CEO of the U.S. bank is not convinced of the goodness of Bitcoin.
But his bank seems to go in another direction, at least in the relationships distributed to investors.
It still takes patience. As Anthony Pompliano commented on Twitter:
„In the end, everyone capitulates“.
After all, many have changed their minds about Bitcoin. One skeptical person was Stanley Druckenmiller, who in 2018 prophesied the end of Bitcoin while in recent days he admitted to buying BTC.
Then there are those who remain skeptical like Ray Dalio who still have doubts about the validity of Bitcoin.
Time will give the answers. Bitcoin since the month of October has triggered a race that has led him to grow in price in a way that reminds everyone of the bull run of 2017.
It will be the next few weeks to say if the price will suffer jolts and possibly losses in value, or if it is destined to grow even more. This trend will stabilize if enthusiasts like Anthony Pompliano are right, or if the criticism of Jamie Dimon and partners is well-founded.