This has been the biggest sell-off in the U.S. stock markets after early September 2020. However, unlike the previous time, Bitcoin continues to be going strong and bold. In fact, BTC has remained stronger than its other hedge alternative and physical asset Gold.
Gold has not provided a hedge against recent equity volatility. Bitcoin, meanwhile, has crushed it. pic.twitter.com/UR5Jdk5sBm
— Lisa Abramowicz (@lisaabramowicz1) October 27, 2020
This clearly goes to show that BTC has been on the way to decoupling itself from the stock market. Moreover, the recent decoupling of Bitcoin sets the tone for Bitcoin’s next journey ahead. At the current price levels, BTC has already attained a new high for 2020 making the road clear for $14,000 and above.
#BTC #bitcoin $BTC is now above where it was 24 hours ago … even though the Dow Jones dropped 640 points today > that is impressive > especially to those who (mistakenly) thought the two asset classes were correlated > Year-to-date … US #stockmarket is negative > BTC is +80%.
— Ronnie Moas | Nomad | Stocks | BTC | Charity (@RonnieMoas) October 27, 2020
Big Player’s Entry Helps Bitcoin Sustain
Over the last week, the BTC price has surged nearly 13% with a number of big players making an entry in the crypto space. Some of the big players from the traditional finance and payments sector are getting closer to Bitcoin.
Many analysts see PayPal’s decision to offer Bitcoin trading services as a big push for the world’s largest cryptocurrency. If this wasn’t enough, the latest market news is that Singapore’s biggest commercial bank DBS is launching its crypto exchange.
JP Morgan: Bitcoin $40,000 Is Coming
On the other hand, JP Morgan has completely flipped its position in favor of Bitcoin. From Bitcoin is a ‘fraud’ in 2017 to Bitcoin could “crowd out” Gold, the banking giant has come a long way. As reported by Fortune, JP Morgan analysts are saying that Bitcoin could triple from the current levels.
The $40,000 price prediction for BTC comes in a research note published by JP Morgan last Friday. JP Morgan highlights Bitcoin’s emergence as a Gold-alternative, especially among the millennials. “The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency,” mention the research note.
The bank analysts further add that if the trend continues, it can potentially challenge Gold in the long-term term. “Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the Bitcoin price from here,” noted the bank.
The recent commentary from the bank comes on the heels of PayPal’s entry to the crypto space. Here’s a look at how BTC has attracted big players over the last few months.
Last three months in Bitcoin:
-MicroStrategy buys $425m in Bitcoin
-Square buys $50m in Bitcoin
-Stone Ridge buys $110m in Bitcoin
-PayPal integrates crypto purchases
-JPMorgan writes about Bitcoin vs Gold competition
-DBS soft launches crypto exchange
— Joseph Young (@iamjosephyoung) October 27, 2020
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