The American election is over, if not yet finally decided. But bitcoin (BTC) barely seemed to notice. It finished Election Day pretty much where it began — with within a few percent of USD 13,500.
That’s because basic economic reality remains unchanged.
Flagrant money-printing, once begun, is a tough habit to break. And debt has become so astronomical in size, the merest whiff of higher interest expense threatens to push vast swaths of the economy into bankruptcy.
That virtually guarantees near-zero interest rates will continue indefinitely.
This reality is causing a broad shift in sentiment toward crypto assets
Just a couple years ago, for example, investment market sentiment was overwhelmingly bearish. Talking heads on Bloomberg and CNBC routinely labelled crypto “the biggest bubble of all time.”
- Warren Buffett famously said bitcoin was “rat poison squared.”
- JPMorgan Chase & Co. CEO Jamie Dimon declared bitcoin a “fraud,” saying: “If you’re stupid enough to buy it, you’ll pay the price for it one day.”
Fast forward to the present, and how dramatically things have changed. Now, JPMorgan analysts say BTC has “significant upside,” as it competes with gold as an alternative reserve asset — especially among millennials.
Their conclusion:
“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.”
Read more: Crypto News