Square’s recent $ 50 million investment in bitcoin was a “strong vote of confidence for the future of bitcoin” and a signal that the settlement company sees a lot of potential for cryptocurrencies like an asset, JPMorgan banking analysts said in a report today.
While Square’s $ 50 million investment fell slightly in addition to MicroStrategy’s recent $ 425 million investment in crypto, JPMorgan’s global market strategists have predicted that Square is likely to buy. more.
Other payments companies may also follow in Square’s footsteps or risk falling behind in a growing segment, analysts wrote.
JPMorgan noted that Millennials used Square’s Cash App to buy BTC, along with Microstrategy’s transactions, suggesting that Q3 demand for bitcoin was far ahead of Q2.
While noting that BTC options contracts have increased, given institutional clients prefer to trade with established exchanges like CME, JPMorgan strategists say it’s likely that retail traffic is growing. promote an increase in options.
Although Square’s investment was a strong vote of confidence in the long term, the BTC sell-off in September only partially alleviated what the JPMorgan team described as overbought conditions were created. By the end of July / early August, an increase in net long positions could give a cool wind to the price of BTC in the short term, analysts said.