JP Morgan, yet again, has befuddled the crypto world with its latest series of statements. On October 14, 2020 the firm labeled Square’s $50M investment in Bitcoin as a ‘vote of confidence in the cryptocurrencies’. Along with this, the JP Morgan analysts commented that the company saw a great deal of potential for the cryptocurrencies as an asset. However, this recent chain of statements released by JP Morgan has put Bitcoin owners in a state of dilemma. This came up almost simultaneously with analysts from JP Morgan commenting that Bitcoin is slightly overvalued as a commodity. The analysts ascertained this by calculating the intrinsic value of Bitcoin after treating it as a commodity.
The statements were also directed towards the steadily rising world of Bitcoin derivatives, where JP Morgan’s specialists raised their concerns about the bullish positions of the investors.
Is this something to fret about?
However, the sensational statements from JP Morgan are not a new happening. The financial world is quite acquainted with the paradoxical war of words that the organization has waged on Bitcoin and other cryptocurrencies. The events of September 2017 are still fresh in the minds of multiple crypto enthusiasts. Back then, Bitcoin had dipped a staggering 25% after J.P. Morgan Chase & Co. Chief Executive James Dimon called it a fraud and claimed that he would fire any employee associated with his organization who traded this cryptocurrency.
The exposè that followed
What turned the event interesting is the following occurrences. Multiple subsidiaries of JP Morgan were discovered buying Bitcoin in this period of price dip, exposing the company’s hypocritical stance on Bitcoin.
Not only this, surprisingly just two months after the events of September 2017, the company put forward their plans of offering Bitcoin trading services to their clients. When crypto enthusiasts thought that the attacking stance of the firm has finally softened, JP Morgan CEO, who had previously labeled all crypto investors as ‘stupid’, called cryptocurrencies as a scam and requested governments to ban it.
2019: JP Morgan and Cryptocurrencies turn best friends
While this hate for the cryptocurrencies did not persuade the firm from releasing its crypto coin- JPM Coin in February 2019.
The hypocritical stance from JP Morgan on Bitcoin and other cryptocurrencies is quite apparent now. The company that went ahead in labelling Bitcoin as a scam, has now released statements admitting that Bitcoin has an intrinsic value. While on one hand, the firm claimed that the Bitcoin price is overvalued, on the other they lauded Square’s $50M Bitcoin investment as a ‘strong vote of confidence’.
A veteran crypto investor who wishes to be anonymous commented that the company may want to recreate the 2017 scenario. Since the price of Bitcoin is at the year’s high, the company may be planning to adopt the tactics from 2017. Could JP Morgan be misusing their strong influence on the financial world to hijack the soaring crypto wave in their favor?
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