Bitcoin has seen a strong uptick in institutional adoption over recent weeks and months amid the worst economic trends in many decades. Wall Street analysts think that the asset may act as a hedge against the U.S. dollar dropping and other geopolitical and macro trends.
JP Morgan made this much clear when the firm released a commentary on this nascent market. The prominent Wall Street firm commented that Bitcoin could rally multiples higher if it manages to crowd out gold to some extent.
Bitcoin Commentary By JP Morgan Makes Rounds
On Friday and Saturday, a report from JP Morgan made the rounds online. The firm had covered Bitcoin in an extensive research report that highlighted the opportunities in this market.
Dan Tapiero, a co-founder of Gold Bullion International, shared part of the report to his Twitter.
The report says that Bitcoin could “compete more intensively” with gold as an alternative currency in the future given the rise of millennials. The report added that “even a modest crowding out of gold as an ‘alternative’ currency […] would imply doubling or tripling of the bitcoin price from here.”
The report also mentioned that the introduction of CME futures and PayPal supporting crypto-assets will allow other firms to enter this nascent space.
Most bullish commentary for #bitcoin that I have read from JP Morgan
Widespread research piece reaches all clients of the bank.
Paypal announcement “cover” for other traditional players to get involved. pic.twitter.com/lUd8oYQ77h
— Dan Tapiero (@DTAPCAP) October 23, 2020
Institutional Adoption to Drive BTC
Analysts say that institutional adoption will drive Bitcoin dramatically higher than it is now. Raoul Pal, CEO of Real Vision, recently commented on the matter:
“Just from what I know from all of the institutions, all of the people I speak to, there is an enormous wall of money coming into this. It’s an enormous wall of money — just the pipes aren’t there to allow people to do it yet, and that’s coming. But it’s on everybody’s radar, and there’s a lot of smart people working on it.”
The former head of Goldman Sachs’ hedge fund sales division elaborated that Bitcoin could hit $1,000,000 in this market cycle thanks to institutional adoption. He has also looked to macro trends, such as the introduction of record level fiscal and monetary stimulus, along with the rise of digital currencies enabled by the government.
Photo by Mathieu Olivares on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com "Holy Cow": Industry Reacts to Bullish Bitcoin Analysis by JP Morgan
Credit: Source link