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JPMorgan turns bullish on Bitcoin citing ‘potential long-term upside’
A report from JPMorgan’s Global Markets Strategy division discusses three bullish reasons for Bitcoin’s long-term potential. JPMorgan, the $316 billion investment banking giant, said the potential long-term upside for Bitcoin (BTC) is “considerable.” This new optimistic stance towards the dominant cryptocurrency comes after PayPal allowed its users to buy and sell crypto assets. The main factor put forward by JPMorgan’s Global Markets Strategy division is Bitcoin’s competition with gold. The note, obtained by Business Insider, reads:
“The potential long-term upside for bitcoin is considerable if it competes more intensely with gold as an ‘alternative’ currency we believe, given that Millenials would become over time a more important component of investors’ universe.” The analysts also pinpointed the large valuation gap between Bitcoin and gold. At least $2.6 trillion is said to be stored in gold exchange-traded funds (ETFs) and bars. In contrast, the market capitalization of BTC remains at $240 billion.
JPMorgan hints at three major reasons for a BTC bull ma JPMorgan’s note essentially emphasized three major reasons to support the long-term growth potential of Bitcoin. First, Bitcoin has to rise 10 times to match the private sector’s gold investment. Second, cryptocurrencies have high utility. Third, BTC could appeal to millennials in the longer term. Read more...
Cryptonaire Weekly | October 27th 2020
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