Two days ago, Jamie Dimon, J.P. Morgan’s CEO, started talking trash about Bitcoin.
Bitcoin, the world’s leading cryptocurrency, quickly tumbled by 7%...
And other digital currencies fell even more.
Based on this news, your first instinct might be to sell your cryptos and run for the hills.
But that would be a major mistake.
Today I’ll explain why…
Then I’ll show you how this hiccup could be a blessing in disguise.
He Said What?
So what exactly did Mr. Dimon say?
If it sent the whole crypto market into free fall, it must have been pretty bad, right?
Well, it certainly wasn’t good — but as you’ll soon see, it wasn’t so bad either.
First he called Bitcoin a “fraud.” Then he said that he’d fire any of his traders holding positions in it — just for being “stupid.”
On the surface, those are harsh words.
But as usual, when it comes to Wall Street insiders, nothing is what it seems…
Mr. Dimon’s Real Agenda
The big banks tend to say one thing…
But, behind the scenes, they’ll do the exact opposite.
For example, during 2008’s real estate meltdown, the banks told everyone that things were fine, no problems at all.
But at the same exact time, it turns out they were making huge bets against the housing market by using toxic investments like Credit Default Swaps.
And that’s exactly what’s happening here:
Jamie Dimon slammed Bitcoin… but he was pretty darn quiet about a different cryptocurrency called Ethereum.
So why would he single out and bully Bitcoin?
Because J.P. Morgan — along with 80 other banks including Credit Suisse, ING, and UBS — has a vested interest in the success of Ethereum, which is a Bitcoin “competitor”!
You see, earlier this year, these banks got together and formed an organization known as the Enterprise Ethereum Alliance.
One of their goals is to use Ethereum to slash up to $80 billion from the banks’ annual costs!
So Mr. Dimon wasn’t simply slamming Bitcoin…
He was doing something bankers have done for decades:
He was slyly attempting to “talk up” his own position.
So Is Bitcoin Dead?
Does this mean you should sell your Bitcoin and go whole hog on Ethereum?
In fact, this could turn into a great buying opportunity — for Bitcoin and for Ethereum.
Let me explain what I mean:
Bitcoin and Ethereum have had impressive runs this year — in fact, some say they’ve gone up too much, too soon:
Since January, Bitcoin is up more than 500%....
And Ethereum is up by more than 5,000%.
So if these coins continue to be impacted by this “hiccup,” you should jump in.
How to Play It
Here’s how I’m playing it:
Given where the market is right now, I’m putting in “limit orders” for Bitcoin and Ethereum at $2,000 and $150, respectively.
In other words, if Bitcoin drops to $2,000 or below, or if Ethereum drops to $150 or below, my orders will get filled.
To be clear, if you’re using a basic exchange like Coinbase to buy your cryptos, you won’t be able to use limit orders…
To use limit orders, use GDAX (which is what I use) or Gemini.