Bitcoin and gold comparison flares up again as BTC price returns to July 2022 levels. According to JPMorgan analysts, BTC has the potential to reach $45,000 in the long run, following gold’s trail.
JPMorgan analysts say Bitcoin will follow gold
Bitcoin price has returned to July levels with the June 10 drop. JPMorgan analysts suggest that Bitcoin could follow the rise of gold next year. Analysts say that despite investor apathy, Bitcoin and gold are seen as hedges for a “disaster scenario.”
Crypto investors continued to view Bitcoin as a safe haven outside of the traditional financial sector during the US banking crisis of March. The drop in the altcoin market today demonstrates once again the confidence in the leading crypto. BTC is currently at a local top in terms of market dominance. Meanwhile, the biggest altcoins are down 20%.
Another notable point is that Bitcoin is outpacing US tech stocks in 2023. From year to date, the Nasdaq has risen by about 28%, while BTC has gained 50% at one point.
JPMorgan says that during the US banking crisis in March, Bitcoin and gold were seen as hedging instruments. While institutional investors preferred gold, individual investors turned to Bitcoin during the crisis when lenders such as Signature Bank and Silicon Valley Bank went bankrupt.
“April 2024 halving cycle may strengthen individual investor demand”
“Bitcoin will eventually trade on its own fundamentals,” Ed Moya, Oanda’s senior market analyst, told DL News. It doesn’t have to be digital gold. “We may see a strong divergence next year,” he said.
On the other hand, JPMorgan analysts said, “As the April 2024 halving event approaches, retail investors’ demand for Bitcoin is likely to strengthen. The banking giant expects Bitcoin to trade in the $40,000 to $45,000 range that led to this. Another point that JPMorgan analysts pointed out is that corporates have remained uninterested since 2022, while individual demand is increasing.
JPMorgan refers to wallets holding less than 10 BTC as ‘individual investors’. Wallets holding more than 10 BTC qualify as institutional investors. According to the report, while individual investors increase this demand, corporates follow the opposite direction. “Actually, the corporate impulse has been declining since 2022,” JPMorgan said last week.
Meanwhile, Oanda analyst Ed Moya said that if the “regulatory environment doesn’t kill crypto,” Bitcoin will likely trade between $30,000 and $40,000.
The reason for the latest drop is unclear, according to Binance CEO
Crypto traders woke up on the morning of June 10 with the altcoin market losing 20%. Almost all coins except BTC, ETH and XRP have lost more than 15%. Commenting on the drop, Binance CEO CZ says the volatility is unpredictable. As we quoted as Kriptokoin.com, it has also clarified that the drop was not caused by Binance.
https://twitter.com/cz_binance/status/1667439122137358336
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