Global investment banks and hedge fund firms continue remarks on cryptocurrencies, now it’s Morgan Stanly, FxWirePro views “Best thing since sliced bread”

We all know that earlier this month, the JP Morgan Chief termed the cryptocurrency as a fraud. His comments, along with several prominent hedge fund investors, came before a sharp sell-off in bitcoin. Chinese regulation has added an extra bit of tensions to the digital currency universe.

JPMorgan Chief Mr. Jamie Dimon has yet again criticized bitcoin and digital currencies. Mr. Dimon termed cryptocurrencies a "novelty" and said they are "worth nothing."

On the other hand, another IB giant, Goldman sees Bitcoin "Broadly Heavy", in a report issued in the recent past, Goldman's chief technician, Sheba Jafari, determined that "the balance of signals are looking broadly heavy." Goldman was "wary of top ahead of 3,134 a few months ago.

However, it had considered re-establishing bullish exposure between 2,330 and no lower than 1,915." Put in other terms, it appeared that Goldman has taken a bearish view on Bitcoin.

Goldman Sachs has been aggressively exploring blockchain technology for financial transactions and trade infrastructure.

For now, Morgan Stanley Chief Executive Officer James Gorman takes a more measured view on the cryptocurrency than crosstown rival Jamie Dimon, the JPMorgan Chase & Co. head who earlier this month called it “a fraud” that’s in a speculative bubble worse than tulip bulbs.

Bitcoin is “certainly something more than just a fad,” Gorman said Wednesday at an event held by the Wall Street Journal. “The concept of anonymous currency is a very interesting concept -- interesting for the privacy protections it gives people, interesting because what it says to the central banking system about controlling that.”

The digital currency has soared in recent months, spurred by greater acceptance of the blockchain technology that underpins exchange and optimism that faster transaction times will encourage broader use. Prices have climbed more than four-fold this year -- a run that has drawn debate over whether that’s a bubble.

Nevertheless, we at FxWirePro have explicitly stated that the cryptocurrency avenue is still in growing phase of the industry, the better clarity on the underlying asset itself is the perplexing substance, they also present risks to investors given their limited adoption, a number of massive cybersecurity breaches affecting cryptocurrency owners and exchanges, and the lack of consistent treatment of the assets by governments.

The price of a bitcoin fell from the peaks of $4,979.90 to the recent lows of $2,972.01 (as per BTCUSD live quotes by BITSTAMP) in the days after Dimon’s comments followed by Chinese regulatory action for the ban on ICOs.

Ever since then, BTCUSD has regained to the current $4,148.70, according to Bitstamp data.

Despite this turbulence or speculations, what has been the truth is - bitcoin's value has risen 452 pct this year (i.e. from the year lows of $751.34 to the prevailing $4,148).