JP Morgan, the largest U.S. bank, has always viewed Bitcoin with skepticism. Now, however, JP Morgan recommends its customers to include BTC in their portfolio. As an alternative to gold, Bitcoin has good prospects for major price increases, the bank said.
With acceptance and spreading of Bitcoin (BTC) classical banks take a role not to be underestimated. They reach their enormous customer master directly, they can simplify Investments in BTC. But JP Morgan, headquartered in New York, had still positioned itself against Bitcoin in 2017 through CEO James Dimon: The situation was worse than with the tulip bubble in the 17th century and BTC was “fraud”, Dimon rantled. Thus the current turnaround of JP Morgan in the crypto scene is being closely watched. Because in a customer letter JP Morgan compares Bitcoin with gold and comes to positive results. If BTC continues to establish itself as value memory, doubling and tripling are to be expected with the price of Bitcoin.
How JP Morgan reassesses the opportunities for Bitcoin
The letter from JP Morgan was widely publicized on Twitter by Dan Tapiero of the investment firm DTAP Capital, among others. JP Morgan starts the analysis with the often used comparison of BTC with gold. The market capitalization of Bitcoin, at around 240 billion US dollars, is still about a factor of 10 away from the gold that is traded outside the reserves of the central bank. If one considers how much investment is currently flowing into gold, it is clear that the demand for “alternative” currencies is increasing and BTC is drawing a part of these investment sums upon itself.
Even a small shift in volume from gold to BTC will have a significant impact on Bitcoin’s price curves over time, the bank believes. It sees the so-called “millennials” in the “universe of investors” growing in importance. The younger generation is known to be receptive to BTC. JP Morgan emphasizes that Bitcoin is more than just a store of value, but is also used as a means of payment like other crypto currencies. If more and more people accept Bitcoin as a means of payment, this will also have positive effects on BTC. PayPal was mentioned as an example. The globally active payment service provider announced last week that it would integrate Bitcoin into its services and thus ensure price gains.
In general, JP Morgan thus paints a rosy future scenario for Bitcoin and refers to the markets for BTC derivatives as an instrument for investors. Currently, however, one sees tendencies that Bitcoin is “overbought” and vulnerable to profit taking. But medium and long-term thought JP Morgan expects a multiplication of the price of Bitcoin. “Holy cow” comments Tapiero on JP Morgan’s sudden change of heart and sees the analysis as an indication of a bull market.
Conclusion: Bitcoin increasingly with the blessing of the classic financial world
From the USA, encouraging news for Bitcoin is currently sloshing across the Atlantic in large numbers. Bitcoin futures on classic exchanges are experiencing all-time highs in their volume, large companies are setting up reserves in BTC, PayPal is opening up, and now JP Morgan is also switching to the camp of Bitcoin supporters. There has often been talk of BTC having to “grow up”, which should be expressed in broader acceptance and use. As an observer, you get the feeling that this process has begun. For investors, it is becoming increasingly questionable to ignore Bitcoin.
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