Beyond the competition, gold and BTC get equal investment attention.
Key Takeaways
- A report from JPMorgan counters the theory that investors are moving from gold to Bitcoin, showing that investments are being made in both.
- Institutional and speculative investors have contributed significantly to the rise in both gold and Bitcoin futures since February.
- MicroStrategy’s significant Bitcoin purchases are highlighted as a factor adding to the market’s current dynamics, with a note on the potential risks of such a strategy.
JP Morgan dispelled the myth of competition between gold and Bitcoin (BTC). Rather than choosing one or the other, enthusiasts are actually investing in both.
The report released Thursday It challenges the conventional belief that there has been a significant shift in investing. From gold to bitcoin.
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Contrary to speculation sparked by notable outflows from gold ETFs and simultaneous inflows into Bitcoin ETFs, the bank’s Our research shows that there is no evidence of direct conversion between these assets.
Nikolaos Panigirtzoglou and his team of analysts say:
Retail investors and individuals have been spreading both gold and Bitcoin every year, instead of moving from the former to the latter.
The report highlights the following points: Participation of speculative institutional investors, Including hedge funds and momentum traders. is It plays an important role in driving up the prices of both assets. Since February, they have been actively purchasing futures on both gold and Bitcoin, arguably more aggressively than retail investors.
The data shows significant position building. Bitcoin futures increased by $7 billion and gold futures increased by $30 billion. This simultaneous surge in investment highlights broader interest in both assets rather than competitive alternatives.
As JPMorgan points out, one of the most important moments in the investment landscape this year is MicroStrategy’s participation. Highlighting the influential role of corporate strategy in shaping market dynamics, the report stated:
MicroStrategy’s debt-backed Bitcoin purchases add leverage and bubbles to the current cryptocurrency rally and raise the risk of more severe deleveraging in a potential downturn in the future.
By debunking the concept of an either-or scenario, the bank provides a more nuanced understanding of how investors diversify their portfolios.
In other BTC-related news, Benchmark’s report highlights that Bitcoin miner Bitdeer Technologies is undervalued with significant growth potential.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst with an interest in data-driven and fact-based content, as well as content targeting both Web3 native users and industry newcomers.
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Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
