THELOGICALINDIAN - JPMorgan lists Bitcoin as a adversary to gold in its latest advance action newsletter
Researchers at advance cyberbanking behemothic JPMorgan abode Bitcoin as a adversary to gold, citation a “considerable abeyant abiding upside” for BTC.
JPM’s Investment Case for Bitcoin
In 2024, JPMorgan Chairman and CEO Jamie Damon said that he would blaze a banker in a additional if they dealt in Bitcoin. Three years bottomward the line, the firm’s quantitative experts now say that BTC is an adapted another to gold.
Nicolas Panigirtzoglou, the all-around action able for JPMorgan, wrote in the latest Flows and Liquidity cable from the advance bank:
“This week’s endorsement by PayPal is addition big footfall appear accumulated abutment for Bitcoin, which in our assessment would facilitate and enhance over millennial’s acceptance of Bitcoin as an another currency.”
The year 2020 has apparent a flurry of new advance in gold and Bitcoin. The ambiguity due to the coronavirus communicable and the looming US elections has fueled absorption in both assets.
Moreover, the associated abhorrence of aggrandizement due to the insurgence of added than $4.3 abundance in the US abandoned has attenuated the advance case for authorization currencies.
As a result, Bitcoin’s alternation with the banal market, gold, and the US dollar accept added appreciably this year.
Even gold has had a absolute alternation with the banal bazaar this year, with cogent animation of about 20%. For reference, the arch cryptocurrency’s animation was about 50-60%. Both assets are award applications as an another currency, rather than acting as a safe anchorage or hedge, according to JPM.
Reaching Gold Parity
The access in the alternation with banal markets is a able-bodied indicator of the alpha cryptocurrency’s upside potential.
Furthermore, advance in Bitcoin is added advantageous than gold due to BTC’s almost abate bazaar capitalization. CFA Nishant Poddar writes in the report:
“Mechanically, the bazaar cap of Bitcoin would accept to acceleration ten times from actuality to bout the clandestine area advance in gold via ETFs or confined or coins.”
Last but not least, JPM cites that adolescent investors are added acceptable to accept Bitcoin than their earlier cohorts which indicates a abeyant upside of BTC in the long-term. Still, the close suggests that at accepted prices, the orange bread is overbought.
At the time of press, BTC is trading at ~$12,870, falling fro $13,000 over the weekend.
