3 critical points from JP Morgan's bullish Bitcoin report

Published on by Cryptoslate | Published on

On Friday, Wall Street bank JPMorgan released a report covering the latest trends in Bitcoin and cryptocurrency extensively.

This has changed as Bitcoin and similar technologies have proven their legitimacy, with firms like Fidelity Investments and PayPal and investors such as Paul Tudor Jones and Raoul Pal entering the mix.

"To infer positioning in bitcoin futures, we use our open interest position proxy methodology, where we look at the cumulative weekly absolute changes in the open interest multiplied by the sign of the futures price change every week."

That indicator just hit a "New high for the year as the bitcoin price breached $13,000," suggesting that the coin is overbought.

JPMorgan analysts see the news of PayPal supporting the purchases and sales of cryptocurrency, along with digital asset payments, as a crucial step forward in the corporate adoption narrative.

That's to say, other corporations, whether that is banks or technology companies, may feel enticed to invest in Bitcoin from here.

Michael Novogratz, CEO of Galaxy Digital and a former Goldman Sachs partner, touched on this narrative in a recent interview with CNBC. Novogratz specifically highlighted how Bitcoin, Ethereum, and fintech companies like PayPal and Square have surged massively on the year.

3: Bitcoin has the potential to begin to encroach on gold in the long run.

Finally, the analysts think that Bitcoin could begin to "Crowd out" gold over time, driving prices dramatically higher.

Again, they specifically pointed to the rising millennial graphic, noting that they will likely prefer Bitcoin as an alternative currency over gold.

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