JPMorgan, which is also one of the most important banks, has changed its view of the world's number one cryptocurrency.
The price of bitcoin has risen by about 30% since the beginning of the coronavirus. At the moment, the price of Bitcoin is hanging a little below $10,000 per bitcoin.
The CEO of JPMorgan, who has previously said that bitcoin is a "scam", has now said that bitcoin looks "mostly positive" and that cryptocurrencies more broadly have “longevity as an asset class.”
JPMorgan analysts said in a report led by the head of U.S interest rate:
"Though the [bitcoin] bubble collapsed as dramatically as it inflated, bitcoin has rarely traded below the cost of production, including the very disorderly conditions that prevailed in March."
The coronavirus pandemic sent panic through global markets, causing Bitcoin to lose less than half of its value when it fell below $ 4,000 per bitcoin in March.
Bitcoin recovered quicker than most other assets, by the end of April, he had recovered almost all the damage from the corona crash.
JPMorgan found that bitcoin has consistently kept prices above its cost of production.
Previously some people have named the price of generating new bitcoin, a process known as mining, as a potential bitcoin price floor.
Recently, net mining costs have changed, with the number of bitcoins rewarded to those that keep the bitcoin network cut by half in May—dropping from 12.5 bitcoin to 6.25.
Since the bitcoin halving, the price of bitcoin has risen in the third half, though it's failed to hold onto gains above $10,000 despite repeatedly moving above the psychological line.
JPMorgan said it expects bitcoin to remain mostly a speculative asset.
According to the JPMorgan report, titled Cryptocurrency takes its first stress test: Digital gold, pyrite, or something in between?:
“[Bitcoin] price action points to their continued use more as a vehicle for speculation than medium of exchange or store of value."
JPMorgan signed earlier this month established U.S. bitcoin and cryptocurrency exchanges Coinbase and Gemini as customers.
Since 2018, JPMorgan CEO Jamie Dimon has been holding secret meetings with Coinbase chief executive Brian Armstrong.
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