Over the years, JPMorgan (NYSE: JPM) CEO Jamie Dimon has maintained a dismissive stance regarding Bitcoin’s (BTC) potential, with his concerns mostly centered on the asset’s ability to be leveraged in illicit activities.
At the same time, Dimon has questioned Bitcoin’s actual value in the financial landscape. Despite his view on the maiden cryptocurrency, BTC has forged ahead, hitting new record highs.
One of Dimon’s notable objections emerged on January 17, 2024, when he famously labeled Bitcoin a ‘pet rock,’ claiming that the digital currency ‘does nothing’ while vowing not to speak about it again. However, he broke this promise days later.
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To his credit, Dimon sees value in blockchain technology, especially for facilitating payments.
“This is the last time I’ve ever talked about this [Bitcoin]. Blockchain is real. It’s a technology. We use it, it’s going to move money. <…> There are cryptocurrencies that do something that might have value. And then there’s one that does nothing, I call it pet rock. The Bitcoin, or something like that,” said Dimon.
Investing $1,000 in Bitcoin after ‘pet rock’ comments
When the executive made these remarks, Bitcoin was trading at $43,132. Since then, BTC has surged 141% to trade at $104,038 as of December 16.
Therefore, an investment of $1,000 back in January would have grown to $2,410, representing a gain of $1,410, more than doubling your money.
Indeed, Bitcoin has had a rollercoaster during this period, culminating in a record high of over $106,000 on December 16. This surge was buoyed by post-election optimism following Donald Trump’s victory.
The price momentum has been fueled by projected friendly crypto regulations under the Trump administration, with recent gains stemming from speculation about the possible rollout of a strategic Bitcoin reserve in the United States.
When Dimon made his remarks, the Securities and Exchange Commission (SEC) approved the first spot Bitcoin exchange-traded fund (ETF), contributing to Bitcoin’s first all-time high of the year, above $73,000.
What next for Bitcoin
As of press time, Bitcoin was trading at $104,038, having retracted from its record high of $106,000 earlier in the day. The short-term correction emerged amid skepticism regarding the impact of the upcoming Federal Reserve interest rate decision.
There is anticipation that the institution will lower rates by 25 basis points, translating to a total easing of 100 basis points since September. However, markets have reacted with skepticism as concerns linger that after this rate cut, the Fed’s stance could potentially diminish hopes for further reductions and limit the bullish impact of the rate cut.
Nevertheless, most market sentiment remains bullish on Bitcoin’s long-term outlook. Several entities project that the asset will likely double its valuation by 2025.
As reported by Finbold, banking giant Standard Chartered projects that institutional capital inflows will push Bitcoin to $200,000 by the end of 2025, elevating its market cap to almost $4 trillion.
Finally, in a December 13 note, investment management firm VanEck forecasted that the current bull market would likely extend into the first half of 2025, with Bitcoin potentially hitting $180,000.
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