Open an Account
Open an Account

Bitcoin goes mainstream?

Bitcoin goes mainstream?

Bitcoin goes mainstream?

in Weekly Forecasts

In recent mainstream media reports the words Bitcoin and cryptocurrency are only associated with two groups of people. Firstly, terrorists and criminals. Secondly, with those who want to see a new, utopian future. So, very limited mainstream appeal.

Crypto’s perception changing?

However, recent weeks have seen a major shift in the way that Bitcoin is understood by the world when PayPal announced it will allow its 340+ million user base to buy and spend Bitcoin. This was huge news. Now, there were some small print to this headline that is worth being aware of. Firstly, users cannot transfer cryptocurrencies into or out of PayPal. Secondly, users will not have control of the private keys (the long string of numbers and letters that allow holder to move their digital assets). Notwithstanding the previous two points the endorsement by PayPal sends a green light to the world. Crypto’s are ok to be used by ordinary people. It is the mainstream adoption that this signals which is so bullish for Bitcoin. When central banks are also talking so openly about digital currencies the world is being told that digital currencies are the next, legitimate step. This helps the BTCUSD buyers case.

Bloomberg and JP Morgan send another signal

The famous hedge fund manager Paul Tudor Jones said just last week that Bitcoin’s bull run was just its ‘first inning’ and it was the ‘best inflation trade’. Paul Tudor Jones reported that he has a small, single digit investment in Bitcoin himself. Bloomberg issues an intelligence report projecting Bitcoin to be at $100,000 in five years. JP Morgan’s Global Quantitative and Derivatives Strategy team consider Bitcoin to have considerable upside potential. This shows that Bitcoin is being opened up to more conservative and traditional investors. With JP Morgan and Bloomberg giving positive reports they are opening the gates for more bitcoin buyers from areas that would have normally steered clear of Bitcoin.

All of this means that Bitcoin’s appeal is set to reach more traditional and highly capitalised investors in the near term. Now, no matter what your view is on Bitcoin, new ideal currency or weird anomaly, BTCUSD looks like a buy on the dips as long as this positive stance for Bitcoin remains.

A retest of the weekly broken trend line would be the first obvious test for the bulls.


Latest Posts

15/10/2020
Why central banks are adopting digital currencies
10/03/2021
Seasonal Insights S&P500 10.03.21
07/05/2020
Case for gold bulls remain
23/02/2022
Copper’s rangebound for now

HYCM Lab is a financial analysis source that provides regular insights on how global news affects the markets including forex, commodities, stocks, indices, and cryptocurrencies*. Run by the HYCM team, it equips traders with everything needed to make informed trading decisions.

Legal Forms & Documents      |      Risk Warnings      |      Cookies Policy

Disclaimer: Any opinions made may be personal to the author and may not reflect the opinions of HYCM. All expressions of opinion are subject to change without notice. This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by an employee of HYCM, a third party or otherwise. Past performance is not an indication of possible future performance. Without the approval of HYCM, reproduction or redistribution of this information isn’t permitted.

Legal Information: HYCM is the trading name of HYCM Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Limited and HYCM Capital Markets (DIFC) Limited for which the HYCM Capital Markets group is holding company and its assets are a controlling equity interest in them.​

High-Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

*Cryptocurrencies are not available for trading under HYCM (Europe) Limited and HYCM Capital Markets (UK) Limited (retail clients only).

*Other fees may apply, such as withdrawal fees, dormant account fees, swaps, and spreads.

*Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.

*Any opinions made in this material are personal to the author and do not reflect the opinions of HYCM. This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party or otherwise.

Copyright © 2023 HYCM

Legal Forms & Documents

Risk Warnings

Cookies Policy

Disclaimer: Any opinions made may be personal to the author and may not reflect the opinions of HYCM. All expressions of opinion are subject to change without notice. This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by an employee of HYCM, a third party or otherwise. Past performance is not an indication of possible future performance. Without the approval of HYCM, reproduction or redistribution of this information isn’t permitted.

Legal Information: HYCM is the trading name of Henyep Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Limited and Henyep Capital Markets (DIFC) Limited for which the Henyep Capital Markets group is holding company and its assets are a controlling equity interest in them.

* Cryptocurrencies are not available for trading under HYCM (Europe) Limited and Henyep Capital Markets (UK) Limited (retail clients only).

*Any opinions made in this material are personal to the author and do not reflect the opinions of HYCM. This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party or otherwise.

Copyright © 2023 HYCM