While some market participants are panicking amid the recent crash, the most fervent HODLers are buying the dip. El Salvador’s president Nayib Bukele just announced a purchase of another 410 Bitcoin for $15 million. A Nation-State Buys The Dip Bukele announced his recent purchase in a tweet moments ago, faking out some of his followers. The president – known for trading the nation’s Bitcoin from his phone – last purchased Bitcoin in December. After bagging 21 Bitcoin for $1 million,…
It’s been a great year for Bitcoin, both in price and mainstream adoption, but American banking giant JPMorgan Chase thinks this is only the beginning.
The Wall Street powerhouse bank believes that Bitcoin’s adoption puts gold in jeopardy as the precious metal will “suffer for years” because of the leading cryptocurrency.
A Shift To Crypto
The bank predicts a significant shift from the traditional asset markets into the crypto markets in the long run.
Analyzing the 2020 Q4 trend, JPMorgan strategists said that Bitcoin saw increased money inflow as investors pull out their investments from gold since October. According to the bank, this trend will continue “as more institutional investors take a position in cryptocurrencies.”
“The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced,” the analysts said.
The strategists are right as recent headlines across crypto, and mainstream media show several large corporations investing heavily in Bitcoin. Publicly-traded companies like Square, MicroStrategy, and Stone Ridge purchased BTC worth hundreds of millions of dollars over the last four months.
Gold Records Massive Outflow
According to JPMorgan, Grayscale Bitcoin Trust alone saw an inflow of almost $2 billion since the start of Q4, while gold-backed exchange-traded funds recorded a massive outflow of $7 billion.
Although JPMorgan’s relationship with Bitcoin had a bad start, the Wall Street powerhouse bank is now a believer in the beautiful work of Satoshi Nakamoto.
In 2017, the bank called Bitcoin a “fraud,” saying it would get someone “killed” because “it’s just not a real thing,” and it will eventually get closed.
JPMorgan later apologized for using derogatory words to describe Bitcoin. CEO Jamie Dimon said he regrets his comments and that “Blockchain is real.”
The bank is now bullish on the leading cryptocurrency and predicts that Bitcoin could hit a $40,000 price if the current trend continues.