• 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.

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 price

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. 

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


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.

More Bitcoin News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

More Cryptocurrencies News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP