Bitcoin Unfazed by Monday’s Stock Market Sell-Off, Beats Gold As A Hedge

Bitcoin-Gold-Stock Markets have been on investors’ radar throughout 2020. Interestingly, after Monday’s major sell-off in the stock market, BTC continues to show its strength and is trading above $13,4000 levels at press time. On Monday, Dow Jones (INDEXDJX: .DJI) corrected 650 points or 2.29 with other indices following the cue.

This has been the biggest sell-off in the U.S. stock markets after early September 2020. However, unlike the previous time, Bitcoin continues to be going strong and bold. In fact, BTC has remained stronger than its other hedge alternative and physical asset Gold.

This clearly goes to show that BTC has been on the way to decoupling itself from the stock market. Moreover, the recent decoupling of Bitcoin sets the tone for Bitcoin’s next journey ahead. At the current price levels, BTC has already attained a new high for 2020 making the road clear for $14,000 and above.

Big Player’s Entry Helps Bitcoin Sustain

Over the last week, the BTC price has surged nearly 13% with a number of big players making an entry in the crypto space. Some of the big players from the traditional finance and payments sector are getting closer to Bitcoin.

Many analysts see PayPal’s decision to offer Bitcoin trading services as a big push for the world’s largest cryptocurrency. If this wasn’t enough, the latest market news is that Singapore’s biggest commercial bank DBS is launching its crypto exchange.

JP Morgan: Bitcoin $40,000 Is Coming

On the other hand, JP Morgan has completely flipped its position in favor of Bitcoin. From Bitcoin is a ‘fraud’ in 2017 to Bitcoin could “crowd out” Gold, the banking giant has come a long way. As reported by Fortune, JP Morgan analysts are saying that Bitcoin could triple from the current levels.

The $40,000 price prediction for BTC comes in a research note published by JP Morgan last Friday. JP Morgan highlights Bitcoin’s emergence as a Gold-alternative, especially among the millennials. “The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency,” mention the research note.

The bank analysts further add that if the trend continues, it can potentially challenge Gold in the long-term term. “Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the Bitcoin price from here,” noted the bank.

The recent commentary from the bank comes on the heels of PayPal’s entry to the crypto space. Here’s a look at how BTC has attracted big players over the last few months.