JPMorgan Changes Tune on Crypto as Bitcoin Surges

In a reverse course that no one saw coming, JPMorgan has changed its tune on crypto amid the ongoing Bitcoin surge. Specifically, the institution said, “We see the higher cryptocurrency prices not only sustaining but improving” in a recently issued client note.

The standing is in opposition to comments made by JPMorgan CEO Jamie Dimon. Indeed, he has been vocal about his criticism of certain crypto. Dimon has specifically identified Bitcoin as a “pet rock” while questioning its use cases and relevance as an asset class.

Also Read: JP Morgan: 78% of Institutional Traders Not Interested in Crypto.

JPMorgan Optimistic About Crypto Amid Market Rally

Since the start of the week, the digital asset market has been amid a surge. Leading the way is Bitcoin, which reached its highest level since November 2021, surpassing $57,000 on Tuesday. However, it’s not alone, with Ethereum also surpassing $3,200 and up 50% over last year.

Subsequently, one institution known for its opposition to the asset class has made quite the turnaround. Specifically, JPMorgan has recently spoken about the sustainability of crypto amid the recent Bitcoin surge. The bank upgraded Coinbase’s rating in a recent client note originally obtained by Coindesk. There, it stated the potential further growth of digital asset value.

JPMorgan CEO Jamie Dimon Warns of a Possible Recession Within 6 to 9 Months
Source: Chron

Also Read: BRICS: JP Morgan CEO Predicts Major US Financial Crisis

“We think this Bitcoin appreciation is contributing to better Spot Bitcoin ETF [exchange traded funds] flows, which is, in turn, driving Bitcoin prices higher and pulling other tokens as well,” JPMorgan analyst Kenneth Worthington stated. “we see the higher cryptocurrency prices not only sustaining but improving, activity levels and Coinbases earning power,” as they look to Q1 2024.

This sentiment arrived after the bank recently stated that 78% of institutional traders had no interest in crypto. Moreover, Jamie Dimon has not specifically held back his critical perception of Bitcoin. He called the digital asset a “pet rock” when referring to its lack of utility. Although he noted blockchain technology has several use cases, he has consistently denied Bitcoin’s viability as an asset.

  • bitcoin
  • JP Morgan

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