Gold price „will suffer because of Bitcoin“ according to JP Morgan’s strategists

According to JP Morgan’s strategists, the price of gold is being undermined by Bitcoin.

Inflows into crypto funds and outflows of gold suggest a change in investor sentiment towards the emerging asset class.

JPMorgan is the latest in a series of major financial institutions to be optimistic about the BTC.

The Trust Project is an international consortium of media organizations based on transparency standards.

Strategists at JPMorgan Chase & Co. believe that Bitcoin will continue to eat away at the gold market in the years to come.

The increased interest in crypt funds appears to be coming at the expense of gold.
Investors are increasingly choosing BTC rather than the precious metal.

The recent increases in the price of cryptomoney seem to be due to diversification away from gold. Strategists at JPMorgan Chase & Co. believe the trend may continue as interest in this emerging asset class increases.

JPMorgan says #Gold will suffer for years because of #Bitcoin. The bank says investors‘ adoption of Bitcoin is just beginning. Gold ETFs are losing liquidity while Bitcoin funds are absorbing these flows.

Having served as currency for thousands of years, gold is already a well-established asset. Institutional investors, on the other hand, are just beginning to open up to digital currency, the famous crypto.

Quoted by Bloomberg, JPMorgan strategists have written that the adoption of BTC by institutions „is just beginning“. The investment bank calculated that large asset managers currently hold only 0.18% of their assets in crypto-currency.

For their part, gold ETFs account for 3.3% of the allocations of these asset management organizations. If the trend to switch from gold to Bitcoin continues, there seems to be plenty of room for the BTC, as the precious metal will probably no longer be in vogue.

The bank noted that investors have invested more than $2 billion in the Grayscale Bitcoin Trust since October. In contrast, about $7 billion has exited gold ETFs over the same period.

However, the strategists also noted that the cryptomoney market may have exhausted its short-term momentum. Conversely, the declining price of gold appears to be recovering somewhat.

The concept of „digital gold“ is gaining strength

This year, several influential financial institutions have welcomed Bitcoin as a legitimate part of a portfolio. In addition to JPMorgan’s turnaround of the BTC, Black Rock, Deutsche Bank, Goldman Sachs and Citibank have all expressed varying degrees of interest in digital currency.

Many of these recent converts believe that Bitcoin, with its limited offering, represents the equivalent of digital gold. Indeed, it is the scarcity of traditional assets that makes gold attractive as a safe haven.

Usually, these safe haven stocks do well in times of economic stress. The fiscal measures introduced following the coronavirus pandemic have shaken confidence in fiat currencies, encouraging investments to opt for harder forms of money.

The macroeconomic context already seems to have been beneficial for these two assets. Despite the recent declines, gold and Bitcoin are up by more than 21% and 155% respectively since the beginning of the year.

MicroStrategy CEO: „Bitcoin is like LeBron James“

MicroStrategy CEO Michael Saylor compares the development of Bitcoin with that of basketball star LeBron James.

In an interview with the German financial expert and non-fiction author Marc Friedrich, MicroStrategy boss Michael Saylor emphasized that the criticism of Bitcoin ( BTC ), which was still valid in 2015 and 2017, is no longer applicable.

Like LeBron James

Since 2017, Bitcoin has made significant progress in terms of infrastructure, fundamentals, and adoption. In addition, and probably for this reason, more and more institutional investors have invested in BTC this year as a store of value and a means of protecting against inflation.

While 2017 was still cited as a major criticism that the crypto currency would fluctuate too much and could possibly fall to zero, Saylor sees the development over the last three years as a sufficient counter-argument that lets this criticism fizzle out.

The MicroStrategy boss symbolizes this with the aid of the successful basketball player LeBron James, who is repeatedly traded as the heir to the throne of the legendary Michael Jordan

As Saylor points out in his analogy, even James, despite great talent, would have had to go through a maturation process before success could be achieved:

“I also find it important to address the concerns and concerns of those in the crypto community who fear that Bitcoin is too risky, too volatile, or even going to zero. These people are still living in 2012, 2015 or 2017. I answer them with this example: LeBron James played basketball between the ages of 9 and 18, and although he was very talented at the time, he was erratic and inconsistent. When he grew up, he destroyed every one of his opponents between the ages of 18 and 28. “

One of the most important developments Bitcoin has made since 2017 is the significant expansion of the market. While three years ago crypto trading platforms like BitMEX, which specialize in private investors, dominated the derivatives trading market alone, the picture is now different.

As Cointelegraph reported , the large options exchange Chicago Mercantile Exchange (CME), which targets institutional investors, now has a trading volume similar to that of crypto trading platforms for private investors. For example, the CME Bitcoin Futures recorded open interest of $ 1.14 billion on December 4th, which is higher than Binance Futures, Bybit, Huobi and BitMEX.

The on-chain data also shows that more and more large transactions are being made on the Bitcoin blockchain, which is further evidence of the increased interest of institutional investors.

According to IntoTheBlock, the number of transactions valued at more than $ 100,000 has doubled in the past two years. From this, the crypto market researchers conclude that institutions are becoming increasingly active.

Pantera Capital Cryptomaniac Investment Fund Requests $134 Million Increase

The monstrous increase may be an indication that the Pantera’s ambitions are inflating in synchrony with the increase in the price of Bitcoin.

In a request to the SEC on Friday, hedge fund giant Bitcoin Pantera Capital announced a stock offering of up to $134 million – among the largest capital fundraising efforts in the company’s seven-year history.

Formed in 2013 as the first Bitcoin fund in the United States, Pantera initially raised about US$13 million, and later US$25 million.

But in 2018, the fund directed its efforts toward raising more money that would result in the formation of a third investment fund, called Venture Fund III. This new fund attracted $164 million from 2018-2020, with most of the capital flows coming to an end in the terrible crypt year of 2019.

Now, as cryptomoda appears about to enter another booming market, the SEC process indicates that Pantera has big plans ahead.

While there has been no word as to whether this new increase will result in a new fund or simply expand the scope of Venture Fund III, Pantera’s latest investments and executive comments can offer tips on its future strategy.

In an interview with Contelegraph, Pantera CEO Dan Morehead said he believes that the growth of decentralised finance has the potential to overcome the rise of Bitcoin, and that the company is focusing its new bets on the emerging financial vertical. In addition, Pantera appears to be keeping an eye on the expansion of the crypto derivatives market, as shown by a recent investment in the Globe derivatives platform.

But Bitcoin’s henchmen should not feel scorned by Pantera’s interest in DeFi and derivatives. Morehead had also previously set a lunar price target for the largest cryptomeda, having once spoken of a Bitcoin price of $350,000.