The bulls are back in control of bitcoin, with the price crossing the $50,000 level once again. For the week, bitcoin has gained 20% as bitcoin’s market cap inches closer to the $1 trillion threshold once again. Despite bitcoin’s bull cycle, JPMorgan CEO Jamie Dimon can’t refrain from taking aim at the leading cryptocurrency.
Jamie Dimon in an interview with Axios slammed bitcoin for having “no intrinsic value,” saying “regulators are going to regulate the hell out of it.” He doesn’t expect that bitcoin will disappear, but he believes that there is a looming threat that it will be deemed illegal similar to the bitcoin bans that China has implemented. For that reason, he describes bitcoin as “a little bit of fool’s gold.”
The JPMorgan chief strongly believes that bitcoin should be regulated considering that one of its main use cases is as a payment method. Banks are regulated, and so should cryptocurrency, in his view. Dimon points to the use of bitcoin in nefarious activities such as “tax avoidance, sex trafficking and ransomware,” saying that it’s only a matter of time before the market is regulated.
This is not the first time that Dimon has criticized bitcoin. Back in 2017, he described bitcoin as a “fraud” and prohibited the firm’s traders from having any exposure to it. While he has since taken a more indifferent approach, having recently said he doesn’t care about bitcoin, he has also made it clear that he is not a fan of the biggest cryptocurrency, either.
Dimon’s comments coincide with a bull run in the bitcoin market. Raoul Pal, head of Global Macro Investor, noted that the “on-chain analysis suggests a breakout” in the bitcoin price, though it’s hard to say whether it will “break out on its first attempt” or “correct again.”
No idea if BTC breaks out on first attempt or corrects again first but this is one hell of a pattern…. the on chain analysis also suggests a breakout, along with S2F. pic.twitter.com/gYTlOSaCaA
— Raoul Pal (@RaoulGMI) October 5, 2021
Analyst PlanB believes that the bitcoin bull market is in the early stages, forecasting that it is “midway” and “will have at least six more months to go.” PlanB has a year-end price target on the bitcoin price of more than $100,000 based on his own bitcoin stock-to-flow model.
On-chain analyses finished tonight: IMO we are midway, no sign of weakness (red) yet. Note color overlay is not months to halving but an on-chain signal. My guess: this 2nd leg of the bull market will have at least 6 more months to go. pic.twitter.com/HAEMYfQ1pT
— PlanB (Beware of impersonators, I don’t DM) (@100trillionUSD) October 2, 2021
And while JPMorgan’s Dimon may not be a fan of bitcoin, PepsiCo CFO Hugh Johnston said on CNBC that it’s “awfully early” in the crypto game and he would “never say never” about adding bitcoin to the company’s balance sheet. Johnston added, however, that bitcoin is still too “volatile” and “speculative” to serve as a functional currency for PepsiCo now.