An analyst from the US leading financial institution, JPMorgan recently predicted that large financial institutions may soon turn their backs on Bitcoin and invest in Gold. The speculation was made as a result of the dip in price experienced by Bitcoin in the past few days.
Bitcoin has constantly made news headlines this year. More recently though, it hit the headlines for reasons members of the crypto community dread. The price of Bitcoin plummeted from over $50k to around $45k last week.
To make matters worse, the last day saw the leading crypto asset tumble as its price dropped well below $40k. It seems the woes of Bitcoin aren’t over yet as it currently trades around the $35k region.
Speculations and Price Analysis of Bitcoin and Gold
As expected, the plunge in the price of the asset will lead to lots of speculations, and some of JPMorgan’s analysts have shared their views. The recent dump was described as the largest massacre since October last year.
According to data from Cryptoquant, a total of 10,525 BTC was liquidated within just one hour. This includes data from BTC/USD and BTC/USDT perpetual contract alone.
BTC has declined by over 20% since the start of May this year. Gold on the other hand is experiencing a slow but steady increase in value, already gathering 6% gains for the month of May.
The turn of tables for both assets has fueled the assumption that most institutional investors will now turn to gold as a store of value while neglecting Bitcoin.
A few weeks back, the overall market capitalization of the crypto markets hit a high of $2.5 trillion. The recent fall in prices has however sent the figures back. At the moment, the entire market cap for cryptocurrencies is just above $1.7 trillion.
While some experts from JPMorgan believe that a switch is about to occur, from Bitcoin to Gold, crypto enthusiasts like Mike McGlone strongly believes the crypto asset will bounce back up and continue to maintain its position as a reliable store of value over inflation.
