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Bitcoin adoption has become more sudden than gradual and is likely to accelerate,
as we see it, underpinning its price for the foreseeable future and magnifying the dollar’s dominance as the reserve currency. Baseline support has risen toward $50,000 in Bitcoin, with $40,000 representing more extreme downside risk. Resistance around $60,000 is eroding with volatility. Visa, Goldman Sachs and Morgan Stanley have notably embraced the digitalization of money, buoying the process of Bitcoin replacing gold as the global digital-reserve asset.
Even with speculative excess in the broader crypto market, we believe Bitcoin is less prone to a sustained trip up. The imminent launch of Bitcoin-oriented U.S. exchange-traded funds is another bullish underpinning.
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