Several analysts, including those from JP Morgan's Global Markets Strategy Division, suggest that Bitcoin's bullish trend will continue in the long term, and these are some of the possible reasons that are causing this growth.
October has been a very positive and fruitful month for Bitcoin (BTC); Stone ridge y Square They joined the investment in BTC, with $115 and $50 million dollars respectively. On the other hand, parliamentarians of the Spanish Congress received bitcoins as part of an educational campaign promoted by the Blockchain Observatory and Tutellus. Furthermore, we can add that the developers of Bitcoin Core they could be preparing a new update which will integrate new functions to improve the scalability, security and privacy of the network. And on the other hand, Paypal announced new services to allow buying and selling operations with BTC. Without a doubt, all of this is positive news for and benefiting the development of Bitcoin, which also encourages the appreciation of its value within the markets.
In this sense, the integration of Paypal into the cryptocurrency ecosystem is the most recent event to benefit Bitcoin, which many consider positive to expose the cryptocurrency to a larger number of users, and which is causing great frenzy and enthusiasm in the crypto community. In fact, since Paypal confirmed the new services for its users, the market went crazy. In a few hours, Bitcoin grew by almost 10% in value, exceeding $13.000 USD per unit, and marking a new upward trend; and although a price correction is still possible according to several traders, analysts from the Global Markets Strategy Division of JP Morgan and strategists Bloomberg They consider the possibility of a long-term bullish trend, citing that there may not be any determining factors to prevent Bitcoin's value from continuing to appreciate.
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Bitcoin, a potential competitor for gold
In a note issued by JPMorgan's Global Markets Strategy division, which was published by Business Insider, the firm's analysts indicate that Bitcoin now represents competition for gold, considering that the qualities of this cryptocurrency have great potential to compete intensely with the precious metal.
The firm's analysts had already been showing a change in attitude and a new approach towards the potential qualities of Bitcoin, pointing out a few days ago that the investment made by Square, of 50 million dollars in BTC, is a great confidence vote for the development of cryptocurrency and all its potential. Now, in the published note, JP Morgan considers Bitcoin to be the best competitor due to its considerable advantage as an alternative currency.
"The long-term upside potential for bitcoin is considerable that it will compete intensely with gold as an 'alternative' currency, that is what we believe, given that Millennials would eventually become a more important component in the investor universe" .
Millennials, known as generation Y or the millennial generation, demonstrate a greater interest and preference for Bitcoin than for gold; Therefore, considering that this generation will be a key participant in the markets and investments of the future, JP Morgan analysts point out that Bitcoin could achieve success hand in hand with this generation, surpassing gold as an asset and as a reserve in the coming years. years.
JP Morgan, taking new approach to Bitcoin
Alex Kruger, a renowned economist and cryptocurrency analyst, pointed out on his Twitter account the dramatic change that JP Morgan is experiencing, which in 2017 argued that Bitcoin was a fraud and would burst like a bubble, and now views it as competing with gold.
Kruger points out that “we have come a long way” that has led the financial giant to recognize the potential contained in the market-leading cryptocurrency. JP Morgan explained that cryptocurrencies gain value not only because they serve as stores of wealth but also because of their usefulness as a means of payment. The firm argues that the more economic agents accept cryptocurrencies as a means of payment, the greater their usefulness and value will be in the future.
Signs of maturity in the Bitcoin market
For its part, Mike McGlone, senior commodities strategist at Bloomberg Intelligence, deduces that the key to Bitcoin is that it does not seem to have a factor that prevents the appreciation of its value, at least from his perspective. McGlone pointed this out during a interview recent with the medium Kitco News, while stating that Bitcoin's current bullish trend can be maintained in the long term. The expert assures that Bitcoin has a great history of adding zeros to its value, since it began its journey as a means of payment and store of value.
McGlone also argued that Bitcoin has new signs of maturity in the market, such as greater adoption, lower volatility in its price, trading patterns more similar to those of gold and a reduction in its behavior as a risk asset, which also help it to consolidate its price. Finally, McGlone noted that as Bitcoin's market capitalization increases, central banks may become more interested in adopting the cryptocurrency.
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