Analysts from multinational investment bank JPMorgan Chase, in a report published in early Nov. 2020, have said that institutional players are investing heavily into Bitcoin in Q4 2020 than they were in Q3 2020.
- Analysts Nikolaos Panigirtzoglou, Mika Inkenen, and Ekansh Agarwal state that institutional investors view Bitcoin as a long-term investment
- The report refers to Grayscale Investments Bitcoin Fund, the flow to which it stated has “steepened in recent weeks”
- Several large companies have been investing their assets into Bitcoin, most notably Microstrategy, which converted $426 million in cash to Bitcoin
- Bitcoin has also become Square’s predominant revenue stream in 2020
- As for Bitcoin’s price, the report indicates that it might currently be overbought and could trigger profit-taking in the coming weeks
- However, it also notes that Bitcoin’s lack of reversion to its mean price could indicate a greater influence of institutions as opposed to momentum traders
- JPMorgan Chase has recently flipped its view on Bitcoin, stating in Oct. 2020 that Bitcoin could “easily double or triple its value”