Where Is Bitcoin Going?

The recent release of a report by JPMorgan has thrown my mind into gear as concerns where Bitcoin and other digital currencies might be heading; they say any spike we may see in the near term could just be a temporary hiccup, not the beginning of an all-out bull run.

Sourced

Now, I’m not saying you should take every word that comes out of big banks as gospel truth but JPMorgan’s analysis has some interesting ideas worth noting. They opine that Bitcoin’s current price tag of about $67,220 is slightly inflated compared to its cost of production and even vis-à-vis gold. This makes me wonder if there is going to be a correction sooner rather than later.

I’d like to note here that the crypto world was rocked by major liquidations recently.

Gemini, Mt. Gox and even the German government were selling off their Bitcoins. That will put downward pressure on prices for at least some time. However, the point is-JPMorgan thinks these sell-offs may begin to ease before long which can give the market some breathing space.

Seems to me like the upcoming U.S. election is something I can’t help but look forward to, and so does a lot of people who are around me. There’s a talk that a possible Trump presidency would favor crypto. Some investors believe he is more crypto friendly than the present administration. However, I have my doubts about it but it is definitely one thing for sure we must be attentive to.

Again on Trump, there has been wild speculation that he might announce Bitcoin as a strategic reserve asset at an event in future times. That would be an exciting game-changer if it happened.

So, the next couple of months in cryptocurrency space will most likely show us some thrilling movements. Although I doubt if this means another massive bull run is knocking on our doorsteps, there might still be some upward trends.

Nonetheless, with digital coins always expect unpredictability at its worst best, no one knows what comes next. This is part of what makes it so interesting to watch unfold.

Posted Using InLeo Alpha