Lorenzo Stroe
Independent Analyst
- It seems that major global market players are shifting their views in favor of Bitcoin.
- Many institutional investors are looking at Bitcoin as a viable long-term investment.
JPMorgan is an American multinational investment bank that used to have very negative views of Bitcoin and the cryptocurrency market. However, it seems that in the past year, their stance has changed and they have gone as far as stating that Bitcoin will pose a threat to gold.
Institutional money pours into Bitcoin
The rise of cryptocurrencies in the financial sector seems to be great enough for institutional players to notice. JPMorgan Chase & Co has recently stated that gold will be suffering because of Bitcoin as money is being shifted towards the digital asset.
The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced
After several significant investments by Square Inc and other companies like Stone Ridge, MicroStrategy seems to be the latest one to join the bandwagon offering $550 million in convertible notes with net proceeds to buy Bitcoin.
In a press release on Wednesday, the company announced that the notes will be unsecured senior obligations of MicroStrategy and will have an interest rate of 0.75% per annum.
The notes are being offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offer and sale of the notes and the shares of MicroStrategy’s class A common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and the notes and any such shares may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The offering of the notes is being made only by means of a private offering memorandum.
In a World Gone Digital, #Bitcoin May Surpass #Gold -- The past year has been a stepping stone for Bitcoin into the mainstream of investment portfolios and for the digital evolution of money, which should keep the benchmark crypto on an upward price trajectory in 2021. pic.twitter.com/7kmAecbrdR
— Mike McGlone (@mikemcglone11) December 9, 2020
Mike McGlone, a Senior Commodity Strategist for Bloomberg Intelligence also believes Bitcoin could be on its way to surpass Gold if the world shifts digitally.
Bitcoin price could be rebounding into a new all-time high
Despite the most recent sell-off, Bitcoin seems to have rebounded quite well and has formed a bullish candlestick on the daily chart after defending a critical support level in the form of the 26-EMA which has held since October 9.
BTC/USD daily chart
On top of that, it seems that Bitcoin’s inflow mean on all exchanges has hit its highest point since March when the price hit the year low. According to the CEO of Cryptoquant, Ki Young Ju, this should be considered bullish in the long-run.
$BTC All Exchanges Inflow Mean(7d MA) hit the eight-month high since March when the price hit the year-low.
— Ki Young Ju 주기영 (@ki_young_ju) December 9, 2020
Very bullish in the long-run.
Thread pic.twitter.com/O00EA5yv4P
Although the announcement by MicroStrategy to buy a significant amount of Bitcoin has increased its buying pressure, there are some concerning news out from Mt.Gox which could potentially release around 150,000 Bitcoin into the market.
In our last article, we have discussed the possibility of Bitcoin’s correction not being over and BTC bears targeting $13,000 before resuming the uptrend.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Why crypto may see a recovery right before or shortly after Bitcoin halving
Cryptocurrency market is bleeding, with Bitcoin price leading altcoins south in a broader market crash. The elevated risk levels have bulls sitting on their hands, but analysts from Santiment say this bleed may only be cauterized right before or shortly after the halving.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network (MANTA) price was not spared from the broader market crash instigated by a weakness in the Bitcoin (BTC) market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
OMNI post nearly 50% loss after airdrop and exchange listing
Omni network (OMNI) lost nearly 50% of its value on Wednesday after investors dumped the token following its listing on top crypto exchanges. A potential reason for the crash may be due to the wider crypto market slump.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.