• Home
  • Financial
  • Retirement
  • Crypto
  • Investing
Newsletter
Sovereign American
  • Home
  • Crypto
  • Financial
  • Retirement
  • Investing
  • Gold
  • Contact Us
No Result
View All Result
  • Home
  • Crypto
  • Financial
  • Retirement
  • Investing
  • Gold
  • Contact Us
No Result
View All Result
Sovereign American
No Result
View All Result

JP Morgan: Institutions May Replace Bitcoin for Gold As BTC Plummets Below $40K

Sovereign American by Sovereign American
May 19, 2021
0
JP Morgan: Institutions May Replace Bitcoin for Gold As BTC Plummets Below $40K

Analysts of the banking giant JP Morgan opined that institutional investors might withdraw from Bitcoin and turn their sight back to gold as the price of the primary cryptocurrency collapsed.

Back to Gold

The turbulent times for cryptocurrencies caused some analysts to doubt bitcoin’s merit as a store of value. According to JP Morgan experts, the recent crash of Bitcoin can reflect on the entire financial world. They seem to believe that many investors will panic-sell their BTC holdings to replace them with gold – the traditional store of value.

While BTC’s price sunk to $30,000, the value of the yellow metal became very tempting, rising by 6% since the beginning of May.

However, the chief commodity strategist at Bloomberg – Mike McGlone – took a different stance from the forecast of JP Morgan’s experts. He also emphasized gold’s bull run but predicted that bitcoin will be capable of enduring its power:

”It’s a Gold Bull Market. Gold’s 20% discount to its 2020 record high is sufficient for a resumption of a bull market for the metal, as we see it, but store-of-value newcomer Bitcoin is likely to remain a headwind to its upside.”

Change of Heart for JP Morgan

It’s worth noting that this is yet another u-turn on their stance. In November 2020, JPM experts predicted that the competition between bitcoin and gold could lead to a 10x increase in the price of the primary cryptocurrency. According to a report, giant multinational investment banks preferred to allocate their funds into BTC rather than the yellow metal resulting in a massive surge in the digital asset’s value.


ADVERTISEMENT

On another occasion in December 2020, the US banking institution shared completely opposite thoughts on the relation between the two assets. JPM stated that institutional investors started a wealth transfer from gold ETFs towards the primary cryptocurrency.

Moreover, the bank analysts highlighted that allocating funds from gold to BTC will ”represent the transfer of billions of cash.” They further asserted that the precious metal will suffer because of bitcoin:

”The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.”

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:

Enjoy reading? Share with your friends

.custom-author-info{ border-top:none; margin:0px; margin-bottom:25px; background: #f1f1f1; } .custom-author-info .author-title{ margin-top:0px; color:#3b3b3b; background:#fed319; padding:5px 15px; font-size: 20px; } .author-info .author-avatar { margin: 0px 25px 0px 15px; } .custom-author-info .author-avatar img{ border-radius: 50%; border: 2px solid #d0c9c9; padding: 3px; }

Source: https://cryptopotato.com/jp-morgan-institutions-may-replace-bitcoin-for-gold-as-btc-plummets-below-40k/

Related articles

X.LA’s Alex Barkaloff Reveals Vision to Bring Billions to Web3

X.LA’s Alex Barkaloff Reveals Vision to Bring Billions to Web3

August 10, 2022
Metaverse Memecoin Tamadoge Raises $1 Million Midway Through Its Beta Sale

Metaverse Memecoin Tamadoge Raises $1 Million Midway Through Its Beta Sale

August 10, 2022
To Subscribe to this mailing and receive future emails, fill out the form below and click Subscribe.
This field is for validation purposes and should be left unchanged.

Sovereign American

© 2018 SovereignAmerican All Rights Reserved

Menu Links

  • Contact Us
  • Terms of Use
  • Privacy Policy

Follow Us

No Result
View All Result
  • Home
  • Financial
  • Retirement
  • Crypto
  • Investing