JP Morgan Reverses, says Bitcoin and Crypto Have Longevity as an Asset Class

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JP Morgan Chase Chairman and CEO, Jamie Dimon used to call Bitcoin a fraud. Now that Bitcoin has tested $10,000 several times while holding above $9,000, he’s changing his tune. The bank has reported that Bitcoin is “mostly positive” and that cryptocurrencies have “longevity as an asset class.”

JP Morgan analysts issued a report, authored by Joshua Younger and Nikolaos Panigirtzoglou. According to the report, it was unusual for Bitcoin to trade below its cost of production in March, when conditions were “disorderly.” At that time, the price of BTC fell below $4,000 per coin at the same time as the COVID-19 pandemic impacted global economies. It bounced back quickly, recovering most of its value by the end of April.

Equity markets have also recovered, possibly in part due to stimulus money injected into the economy by the US Federal Reserve.

Prior to the halvening, Bitcoin appeared to have a floor at the mining cost at the time. Now, Bitcoin costs twice as much to mine, where block rewards have been cut in half. With this in mind, it may have a higher floor, in the $7,000 range.

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