Bitcoin

JPMorgan: Square’s $50 Million Investment is a “Strong Vote of Confidence” for Bitcoin

· in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

JPMorgan, one of the largest investment banks all over the world released a report in which it talks about Square’s $50 million investment in cryptocurrencies. One of JPMorgan’s analysts said Square’s investment is a “strong vote of confidence” for Bitcoin (BTC) and its future. At the same time, this is a signal that Square considers that BTC has a lot of potential for the future. 

JPMorgan Believes Square Sees Potential in Bitcoin

A few weeks ago, the payment company Square announces it was investing $50 million in Bitcoin. This followed MicroStrategy’s decision to place $425 million in the most popular digital currency a few months ago. As per JPMorgan’s analyst, it may be highly possible for Square to continue adding more Bitcoin to its portfolio. 

This shows there are several companies that are interested in Bitcoin and the cryptocurrency market as a whole. The crypto industry has been expanding and we see how different companies are placing their funds in the space by acquiring Bitcoin and gaining exposure to it. 

The analyst went on explaining that it is also possible for other payment companies to start adding BTC to their portfolios as well. Bitcoin could work as a store of value in times where governments from all over the world are printing large amounts of money to fight against the COVID-19 crisis. 

Bitcoin has a limited supply of 21 million and there will never be more BTC. Instead, fiat currencies get devalued on a daily basis and central banks are being more flexible with their currencies losing value. 

It is worth mentioning that Square has been offering users the possibility to buy Bitcoin through the “Cash App” through it, users are able to acquire the most valuable digital asset and gain exposure to the entire virtual currency market. 

After the Coronavirus crisis in early March 2020 – which affected financial markets and the crypto space – Bitcoin and other virtual currencies had a very positive Q2 and Q3. Bitcoin moved from below $4,000 in March to over $12,400 a few weeks ago. Now, Bitcoin is being traded close to these levels and many analysts consider it may be possible for BTC to continue moving higher.

According to data provided by CoinMarketCap, Bitcoin is now being traded close to $11,400 and it has a market valuation of over $211 billion US dollar. 

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