JP Morgan CEO Jamie Dimon called bitcoin “a fraud” in 2017 and threatened to fire anyone trading it for being “stupid.”
On Friday, a team of quantitative analysts at J.P. Morgan’s Global Markets Strategy group praised Bitcoin as an alternative to gold among millennials, suggesting a “doubling or tripling” in the price of the cryptocurrency if current trends continue, Forbes reported.
“Holy Cow Most bullish commentary for #bitcoin that I have read from JP Morgan,” investor Dan Tapiero tweeted.
Bitcoin is approaching levels not seen since the crypto market bubble burst in 2017. The digital currency reached an all-time high of around $20,000 in late 2017 and fell to $3,136 in December 2018.
Bitcoin’s market cap is $242 billion, according to metrics site CoinMarketCap. The gold market is worth several trillion dollars. As a small asset class, bitcoin’s value would multiply tenfold in order to catch up with gold, Decrypt reported.
J.P. Morgan’s bullishness is partly driven by PayPal’s recent decision to let customers use bitcoin on its platform and Square’s recent addition of $50 million to its balance sheet, Fortune reported.
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However, the demographic trend in the younger generations to choose bitcoin over gold is another cause for being bullish.
“The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency,” according to the research note.
Crypto fund manager Grayscale increased its assets under management by $1 billion in the space of a week, Cointelegraph reported.
JPMorgan strategist Nick Panigirtzoglou wrote about “corporate support for bitcoin, which in our opinion would facilitate and enhance over time millennials’ usage of bitcoin as an ‘alternative’ currency.”
