Bitcoin price will triple by following current trend

October 28, 2020 John Litecoin 0

Source:https://cdn.pixabay.com/photo/2017/12/17/14/12/bitcoin-3024279__340.jpg

  • Banking giant JPMorgan states in a new analysis that the Bitcoin price may double or triple if the current trend continues.
  • According to the analysts, Bitcoin can take decisive market shares from gold and serve as a future store of value.

The Bitcoin price bounced back again yesterday at the $13,240 mark 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 $13,152. The market capitalization has increased to$ 243 billion and Bitcoin dominance is 61.7%.

The analysts of the banking giant JPMorgan have presented surprising results. According to their latest research, Bitcoin has the potential to rise to the status of “digital gold”. In 2017, CEO Jamie Dimon called Bitcoin still a fraud and warned customers of the bank to invest in the cryptocurrency. JPMorgan’s bullish attitude changed due to bullish recent news around PayPal.

The payment giant announced that it will integrate Bitcoin, Ethereum, Litecoin and Bitcoin Cash into the digital wallet for U.S. citizens. Thus 346 million customers of PayPal and 26 million attached dealers come into contact with cryptocurrencies and the adaptation rises rapidly.

In addition, other companies such as Square, MicroStrategy and Grayscale have started to hold Bitcoin as a supposed reserve currency in their own portfolio. This trend marks an important milestone, so that almost 3.75% of the globally available Bitcoin supply is now held by institutional investors. JPMorgan states that the BTC price could triple if the current trend continues:

The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency. Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the Bitcoin price from here.

Bitcoin is particularly popular with younger investors, the “millenials”, and is the preferred currency over gold. Nevertheless, the report notes that the market capitalization of gold is still significantly higher, at USD 2.6 trillion, compared to nearly $242 billion.

However, the value of Bitcoin ETFs traded globally is about the same as the market capitalization of gold. However, analysts warn that Bitcoin is overbought in the short term and is therefore vulnerable to rapid profit taking. In the long term, however, the value of Bitcoin could continue to rise as more and more institutions and points of acceptance act or accept Bitcoin as a means of payment.

This key advantage makes Bitcoin very valuable compared to gold, according to the JPMorgan report.

Bitcoin still bullish, but correction may be imminent

If Bitcoin manages to break through the $14,000 mark, a new era of volatility, investors and price movements could be imminent, according to investor Qiao Wang. 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.

The trader “Jonny Moe” states that Bitcoin must first rise to $13,900 and then draw higher highs than the current ones before BTC can continue to rise in price. In his opinion, a correction is also overdue and must happen in any case for the market to grow sustainably.