Jamie Dimon is backpedaling on bitcoin.

Dimon is the CEO of JPMorgan Chase (JPM), one of the largest U.S. banks. And like many high-ranking bank executives, he’s been highly critical of cryptocurrencies.

In September, he called bitcoin a “fraud.” He also said the market for bitcoin is a giant bubble, among other things:

It’s worse than tulip bulbs. It won't end well. Someone is going to get killed.

A month later, Dimon doubled down on his criticism. This time, he said people who bought bitcoin were “stupid” and that they’ll “pay the price for it one day.”

Those are serious claims.

• After all, Dimon’s one of the most powerful people on Wall Street…

When he speaks, investors take notice.

That said, Dimon’s comments aren’t that surprising.

That’s because bitcoin’s a decentralized currency. It eliminates the need for central authorities—namely big banks like JPMorgan Chase—to settle transactions. This makes it a direct threat to the banking establishment.

So, it’s obvious why Dimon would criticize bitcoin. He was looking out for his own interests.

What’s far more surprising is that Dimon recently changed his mind.

• Last month, Dimon said he regrets calling bitcoin a fraud…

He also told Fox News that "the blockchain is real.” The blockchain is the technology that underpins bitcoin and every other cryptocurrency.

More importantly, JPMorgan is now taking a serious look at cryptos.

You see, JPMorgan published a lengthy report on cryptocurrencies last week. In this report, the authors explain why cryptos are here to stay:

[Cryptocurrencies] are unlikely to disappear completely and could easily survive in varying forms and shapes among players who desire greater decentralization, peer-to-peer networks and anonymity.

This is a huge deal. Just a few months ago, JPMorgan called cryptos a scam. Now, it’s telling people to get used to them.

And that wasn’t the only good news to come out of this report.

• JPMorgan thinks cryptos could eventually become a core holding…

Here’s why the banking giant thinks so:

If past returns, volatilities and correlations persist, [cryptocurrencies] could potentially have a role in diversifying one's global bond and equity portfolio.

You read that right. JPMorgan thinks cryptos could soon deserve a place in your portfolio.

 

Now, we normally don’t put much stock in what big banks like JPMorgan do or say… But you must remember something.

Cryptos are a direct threat to the banking establishment. So, the fact that JPMorgan changed its mind about cryptos says a lot.

It tells us that the technology isn’t going anywhere… and that cryptos aren’t a fad.

Of course, the million-dollar question is this: What made Dimon and Co. change their tune?

Unfortunately, I can’t give you an exact answer. But I have my suspicions…

• The cryptocurrency market has proven incredibly resilient…

There is no better example of this than bitcoin.

Bitcoin, as I’m sure you know, is the oldest, largest, and most important crypto on the planet. But like its counterparts, it’s incredibly volatile.

In fact, it skyrocketed 20-fold between the start of last year and late December. Then it topped out.

Bitcoin went on to fall 71% in less than two months.

That’s a staggering decline. Many people were pronouncing the end of bitcoin. But those naysayers clearly don’t know what they’re talking about.

You see, bitcoin has crashed 30% or more 11 other times since 2010. Each time, it bounced back stronger than before.

Not only that, bitcoin took just 216 days on average to complete a full recovery.

• I’m telling you this because bitcoin’s rallying again…

It’s already up 73% since hitting a three-month low of $5,920 last month. Today, it topped $10,000 for the first time since January.

But don’t worry if you missed out on this latest rally.

Bitcoin’s still about 50% below the all-time high that it set in December. Plus, if history’s any indication, bitcoin should be trading at new all-time highs in just a few months.

So, consider buying bitcoin if you haven’t already. But remember to treat bitcoin like a speculation…

Do your research. Take profits as they come. And don’t get greedy—never invest more than you can afford to lose.