Skip to content

XTB TRADEBEAT

Shocking remark from Dimon, Ripple bounces off key support

Summary:

  • Jamie Dimon regrets he called Bitcoin a fraud but he remains not a fan of cryptocurrencies
  • Bitcoin (BTCUSD on xStation5) could fall as much as 50% and Chinese miners would become profitable
  • Ripple CEO comes forward as the cryptocurrency bounces off a key support

Major cryptocurrencies were somewhat more volatile over the course of the past hours. In effect, Bitcoin deepened its decline, Ripple (XRPUSD) bounced back from a key support while Ethereum (ETHUSD) retreated from its fresh all-time high placed above $1,300. Nevertheless Bitcoin could come back to the spotlight again given the newest remarks coming from JPMorgan CEO.

Jamie Dimon changes his mind with regard to Bitcoin

At first let’s back to the past and recall that Jamie Dimon, CEO of JPMorgan, called Bitcoin a fraud and threatened that he would fire anybody trading cryptocurrencies. However, several weeks later he reportedly regrets what he told but he remains quite far away to be a cryptocurrency fan. In an interview with FOX Business Dimon said "The blockchain is real. You can have crypto yen and dollars and stuff like that." He also added that "The Bitcoin to me was always what the governments are gonna feel about Bitcoin as it gets really big, and I just have a different opinion than other people. I’m not interested that much in the subject at all." Notice that there were some leaks that Dimon had purportedly bought Bitcoins before the price skyrocketed.

link do file download linkBitcoin has already approached a key support area which could bring about a bounce once bulls take control. If so the price could rise back to a $16,200 mark or even higher. Let us also indicate that the digital currency is underpinned by a rising trend line which could additionally help bulls regain their momentum. Source: xStation5

China could become a risk factor for the Bitcoin price again

Sticking to the Bitcoin’s thread let’s mention remarkably interesting article pointing that Chinese miners are nowadays so profitable that they would endure a slump in the Bitcoin price up to 50% before Bitcoin mining becomes unprofitable. To be more precise, according to BNEF analysts miners in China can profit from Bitcoin as long as it’s worth more than $6,925. Notice that the country is a home for about three-quarters of machines used to mine the cryptocurrency. China is also the world’s largest electricity user but the authorities are seeking to discourage miners given a surge in power use in some provinces. Put simply it could become a risk factor once China wants to lower the BTC price in order to make mining less profitable and therefore discourage all people engaged in the digital industry.

link do file download linkBitcoin miners in China would become profitable even as the price tumbles approximately 50%. Source: Bloomberg

Ripple CEO helps XRP bounce back from a key support point

While Bitcoin sits on the fence Ripple has already made a rebound as the price reached a pivotal technical level. If the move continues, buyers could take a stab at breaking an upper boundary of a descending channel. However, a slump below $1.6 would threaten a much more severe pullback. The virtual currency could have found some demand following fresh remarks delivered by Ripple CEO Brad Garlinghouse who said that "the cryptocurrency is focused on working with banks and other institutions to ’dramatically improve’ the way money moves globally". Notice that Ripple is working with three out of the five largest banks in the world. Moreover, the company announced last year that it’s working for the Bank of England as well.

link do file download linkRipple (XRPUSD) bounces back from a key support which could be a turning point. A base scenario assumes a continuation of the rise at least toward an upper limit of the channel. Source: xStation5

Disclaimer

This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.