Bitcoin and its future

Bitcoin-the first Cryptocurrency-was launched in 2009 to fill the loopholes in the financial system. Fast forward to 2021, and Bitcoin is exploding in both value and attention. Although the global pandemic and market uncertainty continue to expand, so far, Bitcoin still shows strong guidance and strong resilience.

International financial company giants PayPal and Visa are also slowly entering the Cryptocurrency field. Bitcoin is also supported by JPMorgan Chase, one of the world’s largest investment banks. The recent forecasted prices of financial powers make traders have great expectations for the target price of Bitcoin in the bull market.

Let’s take a look at the language machine impact of JP Morgan Chase on the price of Bitcoin.

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JPMorgan Chase’s prediction for Bitcoin

One of the largest investment banks in the United States, JP Morgan Chase, recently advocated that Bitcoin is digital gold. In the long run, the price of Bitcoin may double to three times.

Bitcoin recently broke the $50,000 mark. JPMorgan Chase’s predictions circulated in the news and media, because analysts believe that Bitcoin can eventually rise to $146,000 in a few years, so it hit a record high a week ago.

Bitcoin’s current market value exceeds $1 trillion. According to data from JPMorgan Chase, Bitcoin must grow by about three times to be comparable to the US$2.7 trillion global gold investment.

This prediction comes from a financial institution that was once critical of Bitcoin, and it caused great repercussions. This is also inseparable from the fact that financial service companies such as PayPal and Square have begun to accept Cryptocurrency payments.

Some financial institutions have also accepted the changes in the booming Cryptocurrency, because a considerable number of young investors prefer Bitcoin to the traditional financial system. The older generation of investors are skeptical. But young people are often more willing to invest in Bitcoin than gold. According to a survey, young people hold more Bitcoin than Netflix shares.

The JPMorgan Chase report went on to point out that there will be no significant price increase in 2021. They believe that because Bitcoin is over-purchased today and is susceptible to profitability, the price growth will be a multi-year process. JPMorgan Chase’s prediction is meaningful in the long run, because Bitcoin is a better payment system than gold.

JPMorgan Chase predicted the prospects of Bitcoin and also invested in the Cryptocurrency market.

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What does Bitcoin’s bull market mean for traders?

For the largest investors, the once mysterious Cryptocurrency is becoming increasingly popular. Since May 2020, the value of Bitcoin has increased by 300%.

The optimistic forecast of JP Morgan Chase is increasing the confidence and optimism of traders. But there is another view that the bull market of the year will repeat history and end with the massive price crash of 2017.

This is also a possibility, because Bitcoin has followed a similar price pattern in the past. However, the situation at that time was completely different from now. The current Cryptocurrency space and economic situation are different. You can refer to the following points:

  • In summary, young investors are entering the virtual currency world with great expectations. They are well aware of the shortcomings of the current financial system. Therefore, they are willing to choose new types of investment, such as Bitcoin, rather than traditional investment projects.
  • As early as 2017, institutional investors doubted the potential of the Cryptocurrency market. Therefore, they are skeptical of long-term Bitcoin holders. Today, large institutions have also entered the Cryptocurrency market. Institutions are allowing larger-scale investors to buy and hold Cryptocurrencies.

The rise in the price of Bitcoin is not a bubble that will burst soon. According to bull experts, our bull market cycle has not even passed halfway. They are using current and past standards to measure the length of this cycle. Two major events have stimulated the growth of the Bitcoin market:

COVID-19 pandemic
The global pandemic has caused a sharp economic downturn all over the world. In such an environment, people trust Bitcoin as a means to resist economic crises. Institutions such as Microstrategy, Tesla and Square Corp have invested cash reserves in Bitcoin to hedge against inflation.
Bitcoin halving
Bitcoin is halved every four years. The third halving took place in May 2020. At that time, the mining reward of 12.5 BTC was reduced to 6, and the amount of newly circulated coins decreased, leading to an increase in market prices.

2020 is an ideal period for investing in Cryptocurrencies. But it is not too late. If you want to start trading Bitcoin or other cryptocurrencies, Binance can help you.

Binance is a Cryptocurrency trading platform that is part of a network of 280 exchanges worldwide. The platform provides 50 kinds of Cryptocurrency transactions and provides very convenient trading tools and learning materials for beginners. By providing high liquidity to the world, Binance is one of the few safe and stable exchanges in the extremely volatile Cryptocurrency market.

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