Square’s newly reported $50 million investment in Bitcoin (BTC) is a clear vote of confidence for bitcoin’s future and an indication the payments firm sees “a ton of potential” for the cryptocurrency as an asset.

While the $50 million investment in Square pales next to the recent $425 million loading up of the cryptocurrency by MicroStrategy, JPMorgan’s global market strategists wrote that Square is likely to make more purchases.

The JPMorgan analysts wrote that other payment companies would also likely follow in the footsteps of Square or risk getting shut out of a growing segment.

Millennials used the Cash App of Square to buy BTC, the researchers noted. That demand, along with Microstrategy’s transactions, suggests that Q3’s bitcoin demand surpassed supply at a higher level than Q2’s.

While noting that BTC option contracts have increased because of how institutional customers prefer to deal with established exchanges such as the CME, JPMorgan strategists said that retail traffic is likely to drive the increase in options.

While the investment of Square is a robust long-term vote of confidence since the September selloff in BTC only partially alleviated what the JPMorgan team described as overbought conditions created during late July / early August, an overhang of net long positions could create a headwind for the near-term price of BTC, the analysts said.

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