Ditching Gold For Bitcoin: Large Groups Of Investors Are Switching Camps, JP Morgan Says
Bitcoin has been gaining a lot of popularity, especially during the global crisis triggered by the pandemic.
This year, lots of individuals were convinced of the power of BTC and the fact that the king coin truly is a hedge against inflation and a store of value.
More and more people are seeing a safe haven in the digital asset these days.
At the moment of writing this article, BTC is trading in the green, and the digital asset is priced at $15,409.65.
Moving from gold to Bitcoin
Now it’s been just revealed that the New York-based financial giant JP Morgan said that large investors are putting their capital in Bitcoin (BTC) at the expense of gold.
The online publication the Daily Hodl notes that Grayscale managing director Michael Sonnenshein shared a chart from a recent JP Morgan report which shows that since October 2019, Bitcoin left gold in the dust in terms of demand.
“What makes the October flow trajectory for the Grayscale Bitcoin Trust even more impressive is its contrast with the equivalent flow trajectory for gold ETFs, which overall saw modest outflows since mid-October. This contrast lends support to the idea that some investors that previously invested in gold ETFs such as family offices, may be looking at Bitcoin as an alternative to gold.”
The report is reiterating the US banking giant’s bullish stance on the king coin.
Back in January, JP Morgan said that a shift in the demographics would serve as a tailwind in BTC’s ascent.
“The potential long-term upside for bitcoin is considerable as it competes more intensely with gold as an ‘alternative’ currency we believe, given that millennials would become over time a more important component of investors’ universe.”
— Michael Sonnenshein (@Sonnenshein) November 7, 2020
There are all kinds of optimistic predictions about the price of BTC these days.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.