JPMorgan Chase Expects Bitcoin to Cannibalize the Gold Market

Cryptocurrencies are gradually being watched by traditional institutional investors. JPMorgan Chase recently issued a report stating that cryptocurrencies are rapidly emerging in mainstream gold, and it is currently at the expense of gold. In the long run, more and more institutional investors will increase cryptocurrencies. Currency position.

Bitcoin has always been regarded as digital gold among the cryptocurrencies, and this concept has gradually penetrated into the field of traditional asset management. “At present, traditional investors are just beginning to hold Bitcoin, and the proportion of gold holdings is still far away from Bitcoin.” Motong pointed out that Bitcoin only accounts for 0.18% of family fund assets, while gold ETFs (trading funds) Funds traded) accounted for 3.3%.

However, the investment bank’s strategists expect that in the future, funds may be transferred from gold to the cryptocurrency market. As the popularity of cryptocurrencies as assets will increase, this trend is expected to continue. Approximately billions of funds. Motong believes that this move will cause problems in the precious metals market in the next few years, even if investors only transfer a small part of their funds to Bitcoin. If this medium to long-term argument is established, the price of gold in the next few years will be subject to structural shocks.

As for, in the short term, after Bitcoin has experienced a round of upsurge, it may have been too high, and investors have the opportunity to start selling, which will revive the gold market. As of 9 p.m., Bitcoin still failed to get rid of the recent trend of cowhide, falling 0.4% to 18,175.38 US dollars. However, since the beginning of this year, its price has risen by 1.5 times, while the price of gold has only risen 18.5%. In terms of increase, Bitcoin has clearly led the way.