Bitcoin has been experiencing a surge with the approval of Bitcoin exchange-traded funds. However, Jamie Dimon, the CEO of JPMorgan, remains steadfast in his criticism of Bitcoin and the overall cryptocurrency market. Dimon's recent statement has raised doubts about the value, and today’s Bitcoin price has dropped from previous highs. Could such comments be partly responsible for this situation?
Dimon is known for his disdain for Bitcoin, but his recent comments are more forceful than ever. According to Forbes and Binance News, Dimon said that he, “doesn’t care,” about his competitors like Fidelity and BlackRock entering the crypto market, and wants this to be the last time he ever talks about Bitcoin. He went on to state that the only use cases for cryptocurrency were criminal, including anti-money laundering, fraud, sex trafficking, and tax evasion. Dimon noted that individuals have a right to purchase whatever they want, but that he considers Bitcoin to be a “pet rock” that does nothing.
His comments, while harsh, support his previous views on the subject. Dimon asserted in 2017 that Bitcoin will eventually be worthless and that things would end badly for its investors. This has been historically wrong so far, with Bitcoin proving to have a strong return on investment, and increasing in value by 1,000% over the past six years. However, some of Dimon’s other predictions about Bitcoin have been confirmed. Cryptocurrency does have a track record of being used to fund criminal enterprises like terrorist groups, and the founders of the two largest crypto exchanges have been arrested for fraud.
However, this statement from Dimon comes at an interesting time for Bitcoin and for JPMorgan. Bitcoin’s price has been steadily rising for months, and the recent ETF approval has only bolstered Bitcoin’s prospects. JPMorgan is one of two authorized participants for BlackRock’s iShare Bitcoin ETF. This makes JPMorgan intimately involved with the new Bitcoin fund, yet Dimon still asserts that he is against cryptocurrency as an entire concept. The breakthrough ETF approval is paving the way for cryptocurrencies to become more mainstream. These developments bring doubts to Dimon’s statements.
For many traders, this ETF approval reinforced Bitcoin’s value. Bitcoin price has been on the rise because of the impending news and continued to skyrocket post-approval. Since Dimon’s comments have been released, Bitcoin price has taken a small hit. The reminder that the crypto industry is corrupt and risky seems to have put a damper on the ETF approval news, causing some investors to take a step back from the cryptocurrency. Today’s Bitcoin rate is $42,600.22 per share, down 1.27%, or $546.13, from yesterday. While Bitcoin's price is still near the highest it has been in years, it is still far from its all-time high of $68,789.63.
Last week, the US Securities and Exchange Commission approved eleven new Bitcoin ETFs, including BlackRock’s iShare Bitcoin Trust. Other major financial players like Grayscale, Bitwise, VanEck, Fidelity, and Hashdex were also approved to move forward with their Bitcoin ETFs. Yahoo! Finance and Binance News reported that over $4.6 billion was traded in the new US spot Bitcoin ETFs on their first day of trading.
Several other factors have also contributed to Bitcoin price rising over the past few months. A Bitcoin halving is expected to occur in April this year, and the price has been known to jump in the months leading up to a halving. This Bitcoin halving occurs every four years when rewards given to Bitcoin miners for mining blocks are cut in half. The practice helps keep Bitcoin’s value from becoming diluted. As the volatile cryptocurrency market continues to shift, investors and businesspeople alike must continue to weigh the risks for potential rewards.
This article was written in cooperation with Tom White