Isn’t it a dream to double again? Wall Street Investment Banks and Big Brothers Blow Bitcoin to the Sky

  Original title: Isn’t it a dream to double again? Wall Street investment banks and bigwigs have blown Bitcoin to the sky again

   After the payment giant PayPal allowed its users to buy and sell encrypted assets last week, more and more industry institutions began to publish their opinions on Bitcoin. Optimistic view of the future. No, the well-known investment bank JP Morgan Chase and Wall Street legend Paul Jones have “blown Bitcoin into the sky” again!

   JP Morgan Chase’s Global Market Strategy Department pointed out in the latest report, “We believe that if Bitcoin as an’alternative’ currency competes more fiercely with gold, then its long-term potential is huge. Because over time, the millennial generation will become a more important part of the investor world.”

   Currently, the Bitcoin fund Grayscale Bitcoin Trust is the fifth among the millennial retirement accounts. Large holding of the subject matter.

   JP Morgan Chase strategist pointed out that “Older people prefer gold, while younger people prefer Bitcoin as an’alternative’ currency. Both gold and Bitcoin ETFs have received strong capital inflows this year, because both types of ETFs have seen them become’alternative’ currencies. ‘The reason for currency.’

   Due to this simultaneous inflow, there have been several related changes: it changed the pattern of association between Bitcoin and other asset classes. First, the positive correlation between Bitcoin and gold and the negative correlation between Bitcoin and the US dollar are more prominent.

   In addition, the correlation between Bitcoin and the S&P 500 index has strengthened since March due to the purchase of US stocks and Bitcoin at the same time by millennials. However, considering the volatility of Bitcoin is still Very high: 50%-60%, it is more appropriate to characterize it as a “risk” asset rather than a “safe” asset.

   In other words, according to Morgan From Chase’s point of view, Bitcoin and gold may increasingly have “risk” attributes rather than “safe” assets. Based on the trend of the market this year and investor preferences, people may need an “alternative” currency more than a “safe” asset or “hedging.”

  JP Morgan Chase also mentioned the huge valuation gap between Bitcoin and gold. It is said that at least $2.6 trillion is stored in gold exchange-traded funds and gold bullion. In contrast, the market value of Bitcoin remains at $240 billion.

   “Technically speaking, the market value of Bitcoin must rise ten times from here to match the total investment in gold by the private sector through ETFs or gold bars and coins.” And even if it is only moderately in ‘ “Alternative” currency selection to squeeze out gold, also means that “the price of Bitcoin needs to rise by two or three times.”

   JP Morgan pointed out that one of the advantages of Bitcoin over gold also includes practicality. The core of Bitcoin is the blockchain network. This means that users can efficiently and effectively send bitcoins to each other through public ledgers. To transfer gold, physical delivery must be carried out, which becomes challenging. As we have seen in many cold wallet transfers, it is easier to transfer $1 billion worth of capital using the Bitcoin blockchain than physical gold.

  In addition to JPMorgan Chase, Wall Street legend and billionaire Paul Tudor Jones also stated on Thursday that buying Bitcoin “is like investing in Steve Jobs and Apple, or investing early Google.”

   Jones revealed that he bought Bitcoin to hedge against inflation risks. Bitcoin will be the best defensive asset, and it has a bright future. “The reason why I recommend Bitcoin is that it is one of the best choices to fight against inflation, just like gold and inflation coupons. But Bitcoin is still striving for the trust of the mainstream society.”

   Jones said Macro trading is especially well-known for betting on interest rates and currencies. In an interview with CNBC’s Squawk Box, he said: “Bitcoin has many characteristics of being an early investor in technology companies.” Jones said that he saw the greatness of Bitcoin. Potential, and see that some people are “committed to making Bitcoin successfully become a common store of value and a trading tool at a very basic level.”

  ”People who believe in Bitcoin Very very smart and very sophisticated,” he said. “I came to the conclusion that Bitcoin will be the best deal in inflation, a defensive transaction you will take.”

   The price of Bitcoin climbed last week to its highest level since the beginning of the year. Break the $13,000 mark. Payment giant PayPal announced on Wednesday that it had joined the cryptocurrency market, allowing customers to use the online wallet of the American digital payment company to buy, sell and hold Bitcoin and other cryptocurrencies.

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