According to analysts at JPMorgan Chase, the gradual recognition of bitcoin as a reserve asset has a direct impact on the gold market, lowering its price..
In a recent report to the company’s clients, it is said that institutional investors have recently been ditching precious materials in favor of BTC. In the long term, this trend will lead to a structural redistribution of value between these assets, which will have a negative impact on gold..
According to the strategists of the financial holding, now, bitcoin accounts for about 0.18% of the share of investment portfolios on average, which is significantly less than gold (3.3%). Therefore, the outflow of even a small part of funds from the precious metals market to the crypto market will lead to significant changes..
Analysts believe that the decline in the price of gold will be gradual and will take years or even decades..
JPMorgan: Bitcoin will absorb gold value for years
The head of the data analysis department of CEX.IO Broker Yuri Mazur also notes that the capitalization of BTC has not yet reached $ 400 billion, and the estimated value of all mined gold is current prices exceed $ 10 trillion. At the same time, Bitcoin is an alternative defensive asset with much higher growth potential than gold., what can provide investors with good opportunities for high profits.
A confirmation of the high interest of large investors in digital assets is the rapid growth of cryptocurrency funds. Grayscale, the largest bitcoin trust to date, already owns over 500,000 BTC.
text: Ivan Malichenko, photo: Bloomberg