Blessed are the media “experts” that can be relied upon to flood the screens and pages with both bubble and doom talk at market peaks and valleys respectively. Gotta keep those viewers viewing and advertisers spending. Currently the chatter is all about crypto (mostly Bitcoin) and the huge, fast and painful May selloff. If you are involved in the financial markets in any way shape or form, you certainly know selloffs happen. In all markets, not just crypto.
So, while Bitcoin and the crypto sector are experiencing FUD (fear, uncertainty, doubt) it may be time to ignore all the hype and digest some calming views. And, speaking of those calming views a surprising voice rings loud. None other than Jamie Dimon (CEO of JP Morgan), superstar banker and past “trash talker” of Bitcoin has stepped in with a very strong assessment of the crypto sector.
Speaking at Investment Company Institute (ICI) annual meeting recently, Mr. Dimon voiced that he believed crypto markets could hit $5 Trillion valuation. That’s huge considering the total valuation of ALL cryptocurrencies is currently $1.6 Trillion.
While those are calming views, Morgan’s CEO also voiced some concerns and some long held personal thoughts. Citing the need for much needed legal, regulatory and tax oversight Mr. Dimon noted;
“I’m not a fan of Bitcoin. But forget whether I am or not. There should be legal, regulatory, tax, related framework, AML, around crypto. It’s now worth $2 trillion. When are they going to say, “Oh my God, this is worthy of our attention.”
Also, noting the recent ransomware attacks Jamie continued;
“If I were them, I’d be paying attention because when it’s three trillion, four trillion, and five trillion, when grandma starts buying it, and people start being ripped off and ransomware is going into one hundred cities, not thirty, I think you’re going to have an uproar about what was allowed to happen.”
So sure, there is FUD overhanging the crypto/Bitcoin market but all markets experience that at various times. Will all the negative events (regulation, taxes, ESG, China, etc.) come true? Probably not. Will the Warren Buffets and other “Bitcoin goes to zero” haters be right? Probably not. Will Jamie Dimon be right and see a $5 Trillion valuation for crypto? Maybe.
Time to let things settle down and let the media find a new “crisis” or bubble to hype.
Bill Taylor is a longtime market veteran and expert in the digital currencies sector, CEO of Digital Wealth News and a frequent content contributor.