Source: https: //cdn.pixabay.com/photo/2017/12/17/14/12/bitcoin-3024279__340.jpg
- Banking giant JPMorgan says in new analysis that Bitcoin’s price could double or triple if the current trend continues.
- According to analysts, Bitcoin can take decisive market shares from gold and serve as a future store of value.
The price of Bitcoin returned to $ 13,240 again yesterday and fell to $ 12,765. After a short time, new buyers entered the market and Bitcoin was able to recover at the time of writing and stands at $ 13,152. Market cap has increased to $ 243 billion and Bitcoin dominance is 61.7%.
The analysts of the banking giant JPMorgan presented surprising results. According to their latest research, Bitcoin has the potential to achieve “digital gold” status. In 2017, CEO Jamie Dimon called Bitcoin still a fraud and warned the bank’s customers to invest in cryptocurrency. JPMorgan’s bullish stance has changed due to the recent bullish news on PayPal.
The payment giant has announced that it will integrate Bitcoin, Ethereum, Litecoin and Bitcoin Cash into the digital wallet for US citizens. Thus 346 million PayPal customers and 26 million connected dealers come into contact with cryptocurrencies and adaptation increases rapidly.
Additionally, other companies such as Square, MicroStrategy, and Grayscale have begun holding Bitcoin as a purported reserve currency in their wallets. This trend marks an important milestone, so that nearly 3.75% of the globally available Bitcoin supply is now held by institutional investors. JPMorgan says the price of BTC could triple if the current trend continues:
The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as the “alternative” currency. Even a modest crowding of gold as a long-term “ alternative ” currency would mean doubling or triple the price of Bitcoin from here.
Bitcoin is particularly popular with young investors, the “millenials”, and is the preferred currency over gold. However, the report notes that gold’s market cap is still significantly higher, at $ 2.6 trillion, compared to nearly $ 242 billion.
However, the value of Bitcoin ETFs traded globally is roughly the same as the market cap of gold. However, analysts warn that Bitcoin is overbought in the short term and is therefore vulnerable to quick profit taking. In the long run, however, Bitcoin’s value may continue to rise as more and more institutions and acceptance points act or accept Bitcoin as a means of payment.
This key advantage makes Bitcoin very valuable over gold, according to the JPMorgan report.
Bitcoin is still bullish, but the correction may be imminent
According to investor Qiao Wang, if Bitcoin manages to cross the $ 14,000 mark, a new era of volatility, investors and price movements could be imminent. Josh Rager also states in a recent tweet that Bitcoin could continue to rise in price, but that a correction would be healthy and sustainable for the market.
Trader “Jonny Moe” says Bitcoin must first rise to $ 13,900 and then draw higher highs than current ones before BTC can continue to rise in price. In his view, a correction is also expected and must take place in any case for the market to grow sustainably.
I am looking for a secondary push out of this current consolidation near the $ 13.9 range, followed by a retracement to $ 13k before consolidating further into this range.$ BTC pic.twitter.com/ZoeTqdNiNw
– Jonny Moe (@JonnyMoeTrades) October 26, 2020
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