The adoption of bitcoin (EXANTE: Bitcoin) by institutional investors has begun, Bloomberg reports, citing JPMorgan's recent report. According to the US financial banking giant, gold might suffer in the long-term if bitcoin continues to evolve on the traditional financial market.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
However, bitcoin's adoption has only begun, while for gold "its adoption by institutional investors is very advanced," JPMorgan analysts said. Nonetheless, the largest cryptocurrency by market capitalization still has all chances to beat gold as the economic stability in the coming years will remain uncertain.
"If this medium to longer term thesis proves right, the price of gold would suffer from a structural flow headwind over the coming years," the analysts added.
One way or the other, JPMorgan believes there is a good chance that bitcoin prices have overshot in the short-term which means that gold is due for a recovery. Earlier iHodl reported that JPMorgan expects bitcoin to continue to decline as the recent tumble cleared speculative "froth."
A group of JPMorgan's analysts led by Nikolaos Panigirtzoglou thinks momentum traders could have played a big role in the slide by unwinding long bitcoin futures positions.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.