JPMorgan: Bitcoin Will Eat Gold’s Market Share
Funny how times change. After years of shunning and belittling Bitcoin by their own Jamie Dimon, JPMorgan now is singing its praises:
Bitcoin will eat gold’s market share, according to JPMorgan
Growing mainstream acceptance of Bitcoin (BTC) as a reserve asset is having a direct impact on gold, setting the stage for a major shift in institutional allocation between the two assets, according to analysts at JPMorgan Chase.
Quantitative strategists, including Nikolaos Panigirtzoglou, believe that Bitcoin’s digital gold narrative will draw investors away from precious metals, possibly for years to come, leading to a large divergence in price between the two assets.
The bank said Bitcoin only accounts for 0.18% of assets held at family offices, compared with 3.3% for gold exchange-traded funds. Using this data as a starting point, only a small reallocation from gold to BTC could lead to “structural headwinds” for bullion’s price.