Posted 11 months ago | by Catoshi Nakamoto

JPMorgan Chase offers its services to consumer and community banking and commercial banking and is stating that Bitcoin is going to go lower. Meanwhile, Morgan Stanley which focuses more on financial holdings and offers its services to multinational corporations, governments, and high-net-worth individuals, has announced that it has purchased 28,289 shares of Grayscale Bitcoin Trust (GBTC.)


In a recent report, JPMorgan analysts expressed that Bitcoin has not yet bottomed out, adding that it’s “beginning the process of healing,” in the short term. However, the JPMorgan analysts noted that they expect further sell-offs before capitulation in the long term, reported.

“Cryptocurrency market shows signs that it is not yet healthy, but it does also appear to be beginning the process of healing,” the analysts wrote.

Nikolaos Panigirtzoglou, another analyst at JPMorgan wrote just last week expressing much of the same that despite the recent correction, “we are reluctant to abandon our negative outlook for Bitcoin and crypto markets more generally.” He further emphasized, “Despite some improvement, our signals remain overall bearish.”

Panigirtzoglou added that Bitcoin’s fair value, which he derived from comparing its volatility to gold, is in a range between $23,000 to $35,000 in the mid-term.

“It would still take price declines to the $25,000 level before longer-term momentum would signal capitulation,” Panigirtzoglou said.

At the same time, the institutional bank Morgan Stanley which used to be connected to JPMorgan just made a purchase of 28,289 shares of Grayscale Bitcoin Trust through its Europe Opportunity Fund, according to an SEC filing.

To understand the significance here, this writer will give you a brief history lesson. JPMorgan Chase & Co. is the parent holding company of Chase(Commerical Bank) and JPMorgan(Investment Bank). John Pierpont Morgan (J.P. Morgan) founded J.P. Morgan & Co., which is the predecessor to Morgan Stanley and JPMorgan Chase. As a result of the Glass-Stegall Act of 1933, J.P. Morgan & Co. was broken up, and it was forced to spin off its investment banking activities into Morgan Stanley.

JPMorgan continued to operate as a commercial bank. However, in the 1990s the bank started to rebuild its investment banking operations. In 2000, JPMorgan merged with the Chase Manhattan Bank, and JPMorgan Chase was formed. In 2004, the megabank acquired Bank One, Jamie Dimon was one of the executives who came from Bank One. During the financial crisis in 2008, JPMorgan Chase also acquired Washington Mutual and Bear Sterns.

Today, JPMorgan Chase is the largest bank in the world with over $2.6 trillion in assets, while Morgan Stanley continues to operate as an investment bank.

It’s important to note that JPMorgan previously said Bitcoin wouldn’t break its all-time high of 20K, only to walk back their comments and admit they were wrong about the end of the Bitcoin bull run before it even started.

While this may appear that JPMorgan is taking a page out of its CEO Jamie Dimon’s book FUDing Bitcoin while investment happens, there are no known current public investment relations between JPMorgan and Morgan Stanley. However, JPMorgan still owns some shares in Morgan Stanley. As a fun note for readers, it’s worth mentioning that JPMorgan previously revealed that it was scared of cryptocurrency disrupting its business model in its filed Annual Report for 2017.

Under the section Competition, deep in the report, JPMorgan wrote:

“The financial services industry is highly competitive, and JPMorgan Chase’s results of operations will suffer if it is not a strong and effective competitor. JPMorgan Chase operates in a highly competitive environment, and expects that competition in the U.S. and global financial services industry will continue to be intense,” the report read.

“These advances have also allowed financial institutions and other companies to provide electronic and internet-based financial solutions, including electronic securities trading, payment processing and online automated algorithmic-based investment advice. Furthermore, both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation. New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies,” the document stated.

Cryptocurrencies can have the eventual impact of putting “downward pressure on prices and fees for JPMorgan Chase’s products and services or may cause JPMorgan Chase to lose market share,” the report revealed.

It’s worth noting that Dimon is out of touch and becoming irrelevant; he has previously said that the cryptocurrency would “not survive” back in November 2015 when the price was fluctuating around the $400 level and has consistently called Bitcoin a bubble, Coindesk previously reported.

In 2017, Dimon bashed Bitcoin and cryptocurrency in general for months increasing the fud then in September JPMorgan purchased the Bitcoin exchange-traded note (ETNs) trading on Nasdaq’s Stockholm exchange Bitcoin XBT on the dip which at the time was roughly -25%. As a result, Dimon was accused of market manipulation violating European market abuse laws causing a flash crash according to a complaint filed to the Swedish financial regulator by a London firm called Blockswater.

However, JPMorgan denied this effort stating that it was just acting as a broker for its clients. “They are not JPMorgan orders,” a JPMorgan spokesperson told Reuters. “These are clients purchasing third-party products directly.”

Around that same time, JPMorgan’s head of digital treasury services Umar Farooq said the following comment.

“We are supportive of cryptocurrencies as long as they are properly controlled and regulated,” Farooq, JP Morgan’s head of digital treasury services and blockchain, said back in 2017.

Dimon later admitted in 2018 that he was wrong and regretted calling Bitcoin and cryptocurrency fraud in general.

As Forbes reports, the company led by Dimon, turned around its message about cryptocurrency and began diving into the industry. Last year, the bank added its first crypto exchange customers and Dimon reportedly hosted secret meetings with the boss of major bitcoin and crypto exchange, Coinbase.

That’s not all though, around the same time, JP Morgan approved two bitcoin exchanges’ accounts for use with its bank, Gemini and Coinbase, The Wall Street Journal reported.

JPMorgan doesn’t just purchase Bitcoin ETFs, the company is also heavily involved with the ‘blockchain fever’ that has infected banks across the world. The financial firm has applied for a “Bitcoin alternative” patent with the U.S. over 175 times in 2013 being rejected every time.

Bitcoin is currently trading at [FIAT: $35,661.62] UP +4.4% in the last 24 hours according to Coingecko at the time of this report.


About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g JPMorgan Consumer Bank FUDs Bitcoin, As Morgan Stanley Institution Buys 28,289 GBTCActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.