JPMorgan: Bitcoin Outshines Gold In Investor Portfolios

JPMorgan analysts observe that when adjusting for volatility, the allocation of Bitcoin (BTC) in investor portfolios now exceeds that of gold. In particular, Bitcoin’s allocation is 3.7 times higher than that of gold. Additionally, they highlight a net inflow of $9 billion into Bitcoin ETFs since their introduction, countering outflows from Grayscale.

JPMorgan said that if gold is used as a comparison, Bitcoin ETFs market could reach $62 billion. In February, the cryptocurrency industry had a great month. Its total value rose to $2.2 trillion, which is around 40% more than the previous month. The main drivers of this spike were a boost of 47% in Ethereum and 45% in Bitcoin’s.

Although altcoins didn’t exhibit the same level of strength, they still managed to achieve double-digit gains. Furthermore, the decentralized finance (DeFi) and non-fungible token (NFT) sectors also experienced positive growth amidst this rally. Moreover, Spot Bitcoin ETFs witnessed a notable surge in net sales, reaching $6.1 billion in February, compared to $1.5 billion in January.

Crypto Market Peaks Amid Bitcoin Surge

Furthermore, Bitcoin, the flagship cryptocurrency, experienced a remarkable 31% surge in value within a month, surpassing $73,800 and setting a fresh all-time high. This upsurge coincided with notable inflows into Spot Bitcoin ETFs. Likewise, stocks associated with crypto mining achieved unprecedented peaks in February.

After reaching its peak, the price of Bitcoin underwent a significant decline today. At the time of reporting, BTC dropped by 5.86% to $68,105.40 on Friday, March 15th, while still holding a market valuation of $1.33 trillion. Notably, the 24-hour trading volume for BTC surged by 91.58% to $85.95 billion.

The rise in inflation rates, as shown in the US Producer Price Index (PPI), is causing the price of Bitcoin to drop. In February, the PPI went up by 0.6%. This was more than the expected 0.3% increase. The Fed will likely monitor the unexpected inflation spike in March’s meeting.

Related Reading |  Just-In: MicroStrategy Rushes to Buy More BTC With $525M

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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