Could gold be nibbled by Bitcoin (BTC) in the future? Yes, according to an analysis by JPMorgan…
Gold VS Bitcoin: BTC advantage according to JPMorgan
Until a few years ago, no bank of scale would have placed Bitcoin as a serious competitor for gold. But this is changing, as JPMorgan recently proved. The bank conducted an analysis, which was reported by Bloomberg, to try to determine whether Bitcoin really threatens gold.
According to JPMorgan, Bitcoin has the novelty for it, and this is where it can find its place in the years to come :
„The adoption of Bitcoin by institutional investors has only just begun, whereas for gold, the adoption by institutional investors is already very advanced. »
Proof of this interest according to JPMorgan: Grayscale Bitcoin Trust has seen $2 billion in contributions since October. Compared to gold ETFs, the difference is marked: the latter have seen $7 billion in inflows over the same period.
Bitcoin VS institutional gold
Is the price of gold threatened by Bitcoin?
According to JPMorgan, Bitcoin currently represents only 0.18% of the assets under management, while gold ETFs represent 3.3%. If part of these funds were to be used for Bitcoin, it would represent billions of dollars injected into cryptography.
Hence a conclusion from JPMorgan :
„If this medium to long term theory proves to be correct, the price of gold will suffer a structural headwind in the years to come. »
In the short term, however, things are different. According to JPMorgan, the price of Bitcoin should continue to retrace, and gold, which had fallen, should rebound.
For now, it is rather the case. After peaking in early December, the price of BTC has gradually fallen. In the space of one day, it even lost more than 8%:
Bitcoin BTC price
In the long term, however, analysts are confident about Bitcoin’s ability to bounce back, with a new test of its absolute record to come.