Recent developments suggest JPMorgan Chase is allowing its clients to invest in Bitcoin. This move is noteworthy, especially since Armando Pantoja, a crypto investor, claims he’s observed these dynamics for years.
Pantoja expressed skepticism about Jamie Dimon’s sincerity regarding the bank’s stance on cryptocurrency. “I didn’t think he really believed what he was saying,” he remarked. “It seemed like a strategy to deter the average investor and subsequently depress prices.”
He elaborated that the bank was taken by surprise by cryptocurrencies, having dismissed them from 2009 until 2018. Pantoja likened the bank to a cruise ship, stating that they take considerable time to adjust course. He posited that their strategy to accumulate Bitcoin affordably involved instilling fear in retail investors.
Armando traced a pattern of aggressive moves directed at the cryptocurrency market during late 2017 and early 2018. He noted that major players, like Facebook, banned crypto ads, while Google, Mastercard, and Visa followed suit, exacerbated by the government’s move to restrict crypto-related payments.
These actions led to Bitcoin’s price plummeting from around $20,000 to roughly $3,000 in 2018, providing significant players with an opportunity to build their positions. Meanwhile, according to Pantoja, JPMorgan was developing its own coin, all while Dimon publicly dismissed Bitcoin as a “scam.”
Pantoja indicated that a similar trend emerged in 2020-21. After Bitcoin again fell to around $3,000 in early 2020, banks resumed their public skepticism while quietly enhancing their cryptocurrency capabilities.
He added that JPMorgan’s advisory network had been instructed to discourage clients from investing in Bitcoin and other cryptocurrencies. This strategy aimed to control demand until the banks could establish their positions. “It’s about getting everything at a reasonable price,” he stated.
Now, with JPMorgan permitting client purchases without custody, Pantoja believes the bank, along with others, has achieved the control it seeks. “They let people start buying once they’ve positioned themselves as controllers and brokers,” he concluded.
