The post Jamie Dimon Says JPMorgan Investors Can Buy Bitcoin: Crypto Rebounds After Nearly $600M Rekt appeared first on Coinpedia Fintech News
The high correlation between Bitcoin and tech stocks has classified the crypto as risk-on assets during times of uncertainty.
Rising accumulation of Bitcoin by institutional investors signals high crypto confidence amid anticipated crypto summer.
At JPMorgan Chase’s annual investor day on Monday, May 19, CEO Jamie Dimon said the bank’s clients can finally buy Bitcoin (BTC). Dimon said that the bank will only allow investors to purchase Bitcoin but the bank will not offer custody services.
“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin,” Dimon said.
The move to allow investors to purchase Bitcoins follows an improved regulatory outlook amid notable capital flight from institutional investors. Meanwhile, Dimon expressed concerns about the U.S. economy, highlighting the likelihood of a recession despite the cool-down tariff wars.
Nevertheless, Kalshi now estimates a 38 percent chance that the United States will experience a recession in 2025.
Crypto Market Rebounds on Short-squeeze
Following the announcement by JPMorgan’s CEO, Bitcoin price rebounded over 2 percent to trade about $105,503 on Monday, May 19, during the mid-North American session. The wider altcoin market followed in tandem led by Ethereum price, which surged over 5 percent in the past 24 hours to trade about $2,518 at the time of this writing.
Consequently, nearly $600 million was liquidated from the crypto-leveraged market, mostly involving short traders. The notable forced liquidation of short positions in the past 24 hours increased the fuel of a short squeeze in the wider crypto market amid bullish sentiment.
What Next?
The improving tariff trade negotiations amid rising demand for digital assets by institutional investors has set the precedent for a parabolic phase in the near future. A crypto summer, often characterized by sustained optimism and rising asset prices, is anticipated to happen in the coming few months.
Moreover, institutional investors – led by Strategy and Metaplanet – have continued to aggressively accumulate more Bitcoins in the recent past. According to market data from CoinShares, digital assets recorded a net cash inflow of about $785 million last week, thus posting the fifth consecutive week of inflows.