The price of Bitcoin (BTC) faces a drop of more than 60% since the last historic high recorded in 2021. However, whoever bought the cryptocurrency during the opportunity that JP Morgan bank opened has already profited more than 500%.
Yes, JP Morgan has already opened a buying opportunity for BTC. In fact, the bank’s CEO, Jamie Dimon, did this exactly six years ago. But of course, Dimon’s intention was to criticize what he believed to be a fraud.
Nowadays, JP Morgan itself has entered the cryptocurrency market, offering Bitcoin trading to its clients and even creating its own cryptocurrency. But before that, Dimon starred in one of the most famous interviews in BTC history.
‘Bitcoin is a scam’
Six years ago, in September 2017, Dimon participated in a now-famous CNBC interview. At the time, JP Morgan’s CEO made headlines with scathing comments about BTC.
The interviewer asked Dimon to talk about the cryptocurrency, which at the time cost around US$4,000. In his response, the bank’s CEO called the Bitcoin monetary system a “fraud that will eventually explode.” Dimon went further, saying that BTC was only suitable for “drug dealers and murderers.”
At the time, the cryptocurrency market, including the largest cryptocurrency on the market, was still in its infancy and many traditional finance managers viewed it with skepticism. The market did not have ETFs, futures contracts and MicroStrategy would only make its first purchase almost three years later.
Dimon’s comments would resonate in the financial world and caused BTC to drop in price drastically. In fact, the cryptocurrency lost 30% in the days following the interview. But just three months later, Bitcoin was already worth almost $20,000 – five times more than when Dimon made his statements.
Six years later, the situation has changed dramatically. BTC has not only survived, but also thrived, becoming a legitimate asset class present in the portfolios of large investors. Its price skyrocketed and reached almost $70,000, an increase of almost 18 times.
In the years since Dimon’s comments, Bitcoin has defied all odds and skyrocketed in value, rising 500% since those statements. Bitcoin was trading at just over $4,000 at the time of the comments, but today it routinely trades above $25,000.
Changing your mind
To get an idea of the changes, Bitcoin is one of the most sought after assets by traditional investors. Dimon himself would withdraw his comments in 2018 after Bitcoin surpassed $20,000 that year. He admitted his mistake and stated
As Bitcoin historian Pete Rizzo commented on social network X, the comments are in stark contrast given Wall Street’s recent reversal on BTC. Nowadays, prominent companies including Blackrock and Fidelity have filed for BTC spot ETFs.
JP Morgan itself began selling BTC to high-net-worth clients in 2021.