Bitcoin more shimmering than gold? – For anyone who has been in the cryptosphere for even 2 or 3 years, seeing the recent – drastic – change in banks‘ perspective on cryptos is impressive. Last compliment from bankers: the mega-bank JPMorgan sees Bitcoin (BTC) so high that it could dethrone gold!
Diversification from gold to cryptos?
The boxing match between Bitcoin and gold as a better store of value , if violent announcement according to experts of the multinational bank JP Morgan Chase & Co .
As the Bloomberg newspaper reports , they believe that the rise of cryptocurrencies in traditional finance is at the expense of the precious metal.
“The adoption of Bitcoin Machine by institutional investors is only just beginning, while for gold, its adoption by institutional investors is already very advanced. “
These outgoing capital flows from gold to Bitcoin and cryptos would be particularly visible since last October . Indeed, as shown in the graph below, this period the ETF based on gold experienced a negative trend (red rectangle), while during BTC strongly progressed upward (green oblique).
Bitcoin is an asset still under-adopted by the biggest investors
If the JP Morgan experts are convinced of the future success of Bitcoin, it is mainly because the king of cryptos represents only 0.18% of family office assets , where gold ETFs represent more than 3, 3% . The latter would therefore seek to balance their respective exposure to these two safe havens a little more.
“If this medium and long term thesis proves correct, the price of gold will suffer from an unfavorable capital flow in the coming years. “
In the shorter term , however, analysts at JP Morgan consider that the price of gold could stabilize , while that of BTC seems to be in the overbought zone , which would give way to a slight correction in prices.