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Bitcoin [BTC] proponent attacks JPM Coin; says “it should be prevented”

Akash Anand

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Bitcoin [BTC] proponent Anthony Pompliano attacks JPM Coin and says "it should be prevented"
Source: Pixabay

JP Morgan, the largest bank in American, had launched its own cryptocurrency JPM Coin a few weeks back. The announcement was met with a lot of criticism and trepidation after reports showed that JP Morgan’s CEO, Jamie Dimon, was a big critic of Bitcoin [BTC] and other cryptocurrencies.

Recently, Anthony Pompliano, on his Off the Chain podcast, gave his views on the upcoming cryptocurrency and its proclaimed uses. The cryptocurrency is based on a private blockchain and backed one-to-one by the US dollar. Pompliano stated:

“When Mr. Dimon was recently asked about the future prospects of JPM Coin, he said that it could one day be used by retail consumers for everyday commerce. This is a fairly significant change from the original talking points in the launch announcement.”

The Bitcoin proponent and co-founder of Morgan Creek Digital Capital was of the opinion that JP Morgan has a more audacious plan in the pipeline. In his words:

“…JP Morgan is going to try something so audacious that we should be offended that they would even try it. Let’s call it the Printing Press Playbook.”

He stated that JP Morgan’s coin will be successful and the bank would start offering JPM Coin to institutional clients and peers for transactions. Pompliano then claimed that as the institutions begin adopting JPM Coin, the bank will start pushing customers and retailers to use the digital currency for everyday transactions. He continued:



“Once JPM Coin is widely adopted, JP Morgan comes up with a clever reason to temporarily diverge from having every JPM Coin backed by a US dollar (just as the Nixon administration said the US dollar would temporarily break from the gold standard in 1971).”

In his blog post, Anthony Pompliano further added that the bank will then get full control over a digital currency that has “little transparency and a high degree of adoption”, which will then see the bank creating more and more JPM Coins out of thin air.

The co-founder was against the idea of JPM Coin’s implementation and concluded:

“We should do everything in our power to prevent this from happening. The US government is already questioned quite aggressively about monetary policy decisions, so imagine if we had to trust a Wall Street bank that was previously charged with a felony.”





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Bitcoin [BTC] surges above $5,500 and breaks major resistance level; collective market rises

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Bitcoin [BTC] surges above $5,500 breaking major resistance level; collective market surges
Source: Pixabay

Bitcoin [BTC] broke out of its sideways trend that saw coins fall after a brilliant start to April. This “break-out” is especially significant since it came days after the coin was trading sluggishly, pulling the market cap below $175 billion.

After breaking the $5,200 level on April 16, the coin held steady, showing no noticeable dips. However, it also began losing the momentum it had gained when it rose by 15 percent on April 2. Many saw the past week as Bitcoin losing steam, opining that a drop to as low as $4,000 would manifest. This pessimism coupled with the delisting dilemma saw the global market decline by 3.31 percent over the past weekend.

Given this backdrop, the present Bitcoin price incline was even more bullish for the collective market. Further, this was not just an effort to shrug off “sideways bears,” but instead, two key levels were broken in order to usher a collective market rise and sustain BTC bullishness.

Source: Trading View

RESISTANCE

The first, as indicated by eToro’s senior market analyst Mati Greenspan, was the resistance level of $5,350. When Bitcoin began to consolidate following the early April high, Greenspan stated that if the BTC price were to punch above the aforementioned level, it “would likely serve as confirmation that we’re pushing higher and will lead to further buying pressure.”

Greenspan stated that the $5,350 level acted as a major support level throughout 2018. Hence, it is incredibly important that Bitcoin surge above it in the next rise to consolidate buying pressure. Another important point to signal the coming of a bullish market was the 200-day moving average which Bitcoin has stayed above since the April 2 rally.

PSYCHOLOGY

The other significant level for the collective market is Bitcoin’s ascendance over $5,500, which it managed courtesy of this rally. Many, including Greenspan, pegged $5,000 as a key psychological level for the coin and hence, the rise above $5,500 less than three weeks after $5,000 was broken will bring back optimism to the BTC market.



Further, as was seen in the April 2 rise, the Bitcoin pump resulted in the king coin increasing its market dominance. At the close of March, Bitcoin was edging closer to losing the majority. However, the rally saw its share increase to 52.4 percent within a day. Following this recent 4.61 percent increase against the US Dollar, the king coin’s dominance increased to 53.2 percent.

Given the elasticity of the collective market to changes in Bitcoin’s price, the market was awash in green as Bitcoin broke the resistance and psychological levels. Amid this bullish charge, some coins stood out for their above-average gains, which included Bitcoin Cash [BCH], Cardano [ADA], EOS [EOS], Litecoin [LTC], and the exchange-ousted Bitcoin SV [BSV].





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