đ What Are Institutional Analysts Saying?
Renowned investment bank JPMorgan argues that Bitcoin has become a more attractive investment than gold in the long term. The reason: the risk-adjusted volatility difference between Bitcoin and gold has historically narrowed. This indicates that BTC remains cheaper than gold in terms of ârelative value,â which could signal potential upside.
âą According to JPMorgan, gold's recent strong rally has increased Bitcoin's appeal because gold has now become more volatile. As Bitcoin's volatility has declined, gold's volatility has increased, making Bitcoin more interesting in terms of price/performance from a risk-adjusted perspective.
âą The bank notes that, based on this volatility difference, Bitcoin could be a âmore attractiveâ store of value than gold in the long term.
âą In another model, JPMorgan calculates that if Bitcoin's market value matches gold's total private investmentâi.e., gold ETFs and bullionâits theoretical price could reach around $266,000, which is a striking prediction for long-term potential.
đ In short, the bank views Bitcoin as more attractive than gold on a risk-adjusted basis, especially as investors look for alternatives as part of a âdebasement tradeâ strategy to hedge against fiat currency devaluation. âMore attractiveâ does not mean a short-term price guarantee, but rather relative long-term potential.
Do you think this institutional perspective will attract more capital to BTC, or will gold retain its role as a safe haven?