Bitcoin price gains another 3% as the largest U.S. bank seems to have turned bullish

Bitcoin price gains another 3% as the largest U.S. bank seems to have turned bullish
Written by:
Michael Harris
31st May, 11:54
Updated: 31st May, 11:57
  • JPMorgan signed Coinbase and Gemini and already started processing transactions for them
  • CEO of the largest bank in the U.S. by assets called Bitcoin a “fraud” nearly three years ago
  • Bitcoin gained 3% on Friday to trade near $10,000 again

Jamie Dimon, the CEO of JPMorgan Chase (NYSE: JPM), had been often described as the biggest Bitcoin hater. However, the last actions from his bank show that he may have changed his opinion on Bitcoin and cryptocurrencies. In the meantime, Bitcoin has added another 3% to its value. 

Fundamental analysis: JPMorgan takes Gemini and Coinbase as its clients

In September 2017, Jamie Dimon described Bitcoin as a “fraud”. His comments made headlines given Dimon’s reputation as one of the most influential bankers in the last few decades. The bank’s officials then clarified that they’re supportive of blockchain technology. 

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“We are supportive of cryptocurrencies as long as they are properly controlled and regulated,” Umar Farooq, JP Morgan’s head of digital treasury services and blockchain, said back then.

Since then, his bank made a few moves that signal a possible change of heart. In February last year, JPMorgan announced it will be launching JPM Coin – a dollar-backed cryptocurrency (stablecoin) for institution-to-institution transfers. The New York-based giant is the largest bank in the United States by assets. 

Fast-forward to this month and Dimon has reportedly hosted secret meetings with Brian Armstrong, the boss of major crypto exchange, Coinbase. As a result, JPMorgan signed Coinbase and another major crypto exchange, Gemini. The bank is now processing transactions for these two exchanges. 

“Ironically, Brian Armstrong and Jamie Dimon of J.P. Morgan—who was the biggest enemy of bitcoin and has pissed on it for years—it turns out they were having secret meetings in 2018 at J.P. Morgan’s headquarters,”  writer Jeff Roberts revealed in his book, Kings of Crypto.

News that JPMorgan signed Coinbase and Gemini came just a few days before Goldman Sachs listed five reasons why you shouldn’t invest in Bitcoin. 

Technical analysis: Bitcoin adds another 3% to its value

Bitcoin price added another 3% on Friday to hit a 10-day high above $9,700. The price action has been creating a series of higher lows and higher highs, which signals a bullish trend. The buyers are now testing the key short-term resistance at $9,700 that has kept the price below for 3 weeks. 

Bitcoin daily chart (TradingView)

A break of this descending trend line would open the door to buyers to press the price action higher and target higher levels. There is a confluence of resistance levels from $10,300 to $11,000. A move higher and above the $11,000 mark would unleash the buyers and facilitate an opportunity to buy the world’s largest digital coin and target much higher levels in BTC/USD.

Summary

JPMorgan may have turned bullish on Bitcoin and crypto in general after it was reported that the banking giant signed two major crypto exchanges – Coinbase and Gemini. In the meantime, Bitcoin gained 3% on Friday to trade near $10,000 once again. 

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