Tag: jpmorgan chase bots

JPMorgan Says Bitcoin Could Surge to $146,000 in Long Term

JPMorgan Chase & Co. sees Bitcoin as a future competitor of gold as an asset class, with the long-term potential to reach $146,000, Bloomberg reports.

Why It Matters: It would be quite the climb for Bitcoin, which rallied to a record $34,000 before retreating a bit on Monday. But it’s a long way off, if anything. Private investment in Bitcoin would have to grow at a multiple of nearly five to match the investment in gold via ETFs or bars and coins.

But a healthy future for Bitcoin depends on its volatility coming down to gold’s level, encouraging more institutional investment.

  • A group of strategists led by Nikolaos Panigirtzoglou said this could be a “multiyear process.”

Key Numbers (From CoinMarketCap):

  1. Bitcoin’s Market Capitalization: $592 Billion
  2. Bitcoin’s Circulating Supply: 18,600,000 Tokens
  3. Bitcoin’s Current Price (9:00 a.m. ET): $31,701.10

As prices continue to improve and volatility appears to stabilize, more institutions and noted investors are getting involved or expressing interest. But a heated debate over Bitcoin remains:

  • “While some argue that the cryptocurrency offers a hedge against dollar weakness and inflation risk in a world awash with fiscal and monetary stimulus, others say retail investors and trend-following quant funds are pumping up an unsustainable bubble.”

The Future, For Now: JPMorgan anticipates headwinds for the digital currency, with indicators “like a buildup of speculative long positions and an increase in investment wallets holding small amounts of Bitcoin showing potential froth.”

Bitcoin rose 1.7% to $31,567 as of 10:31 a.m. in London. The wider Bloomberg Galaxy Crypto Index added 0.9%. On Monday, Bitcoin slid as much as 17%, the biggest drop since March, after breaching $34,000 for the first time over the weekend. The swings are a reminder of the famed volatility of the largest cryptocurrency, whose price has more than quadrupled over the past year.

Bitcoin has the potential to reach $146,000 in the long term as it competes with gold as an asset class, according to JPMorgan Chase & Co. Bitcoin’s market capitalization of around $575 billion would have to rise by 4.6 times — for a theoretical price of $146,000 — to match the total private sector investment in gold via exchange-traded funds or bars and coins, strategists led by Nikolaos Panigirtzoglou wrote in a note. But that outlook depends on the volatility of Bitcoin converging with that of gold to encourage more institutional investment, a process that will take some time, they said.

“A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term,” the strategists wrote Monday. However, “a convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process, according to Bloomberg. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.”

More institutions and noted investors, from Paul Tudor Jones to Scott Minerd and Stan Druckenmiller, have either started allocating funds into Bitcoin or have said they’re open to doing so. While some argue that the cryptocurrency offers a hedge against dollar weakness and inflation risk in a world awash with fiscal and monetary stimulus, others say retail investors and trend-following quant funds are pumping up an unsustainable bubble.

For now, JPMorgan sees headwinds for the largest cryptocurrency, with indicators like a buildup of speculative long positions and an increase in investment wallets holding small amounts of Bitcoin showing potential froth. “The valuation and position backdrop has become a lot more challenging for Bitcoin at the beginning of the New Year,” the strategists wrote. “While we cannot exclude the possibility that the current speculative mania will propagate further pushing the Bitcoin price up toward the consensus region of between $50,000-$100,000, we believe that such price levels would prove unsustainable.”

Related Posts

Analyst Read: $FUBO

A deep dive into FuboTV.

Auto Sales in 2020 Expected to Hit Lowest Point in Nearly a Decade

The auto industry hangs on as Covid-19 changes car-buying habits.

Amazon, Berkshire Hathaway, JPMorgan End Health-Care Venture Haven

El Intransigente

El Intrasigente, República Argentina © Copyright 2020 // Todos los derechos reservados

.

.

Yahoo Finance

#bitcoin#gold#bitcoinpricetarget Yahoo Finance’s Dan Roberts weighs in on JPMorgan’s bullish note on bitcoin. For 2020 election results please visit: Election results: https://www.yahoo.com/elections Subscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. About Yahoo Finance Premium: With a subscription to Yahoo Finance Premium, get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more. To learn more about Yahoo Finance Premium please visit: https://yhoo.it/33jXYBp Connect with Yahoo Finance: Get the latest news: https://yhoo.it/2fGu5Bb Find Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq Follow Yahoo Finance on Twitter: http://bit.ly/2LMgloP Follow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz Follow Cashay.com Follow Yahoo Finance Premium on Twitter: https://bit.ly/3hhcnmV

This A.I. Bot Writes Such Convincing Ads, Chase Just ‘Hired’ It to Write Marketing Copy

Here are two headlines. One was written by a human. One was written by a robot. Can you guess which?

  • Access cash from the equity in your home. Take a look.

  • It’s true–You can unlock cash from the equity in your home. Click to apply.

Both lines of marketing copy were used to pitch home equity lines of credit to JPMorgan Chase customers. The second garnered nearly twice as many applications, according to the Wall Street Journal. It was generated by Persado’s artificial intelligence tool.

This is why Chase just signed a five-year deal with Persado Inc., a software company that uses artificial intelligence to tweak marketing language for its clients. After a trial period with the company, Chase has found Persado’s bot-generated copy incredibly effective. “Chase saw as high as a 450 percent lift in click-through rates on ads,” Persado said in a statement.

That email might have been written by a bot.

Chase says it will use Persado’s tool to rewrite language for email promotions, online ads, and potentially snail mail promotions. It’s also looking into using the tool for internal communications and customer service communications.

When asked if this might lead to downsizing, a Chase spokesperson told AdAge: “Our relationship with Persado hasn’t had an impact on our structure.”

Persado’s tool starts with human-written copy and analyzes it for six elements (narrative, emotion, descriptions, calls-to-action, formatting, and word positioning). It then creates thousands of combinations by making tweaks to those elements.

Kristin Lemkau, chief marketing officer at JPMorgan Chase, is fully on board with Persado. Chase began experimenting with its software three years ago. Sometimes the tool would recommend a wordier headline, which goes against marketing 101. But that longer headline garnered more clicks.

“They made a couple of changes that made sense and I was like, ‘Why were we so dumb that we didn’t figure that out?'” she told the Journal.

By: Betsy Mikel Owner, Aveck @BetsyM

Source: This A.I. Bot Writes Such Convincing Ads, Chase Just ‘Hired’ It to Write Marketing Copy

%d bloggers like this: