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JPMorgan Report: Retail and institutional investors balance gold and bitcoin investments.

By Solomon Victor

Investors have not placed assets solely into either gold or bitcoin (BTC) but they have continued to buy both of them, shows JPMorgan’s recent report. This highlights the different investment approaches employed by individual and institutional players at present in the market.

In contrast to the view in some quarters that investors are shifting from gold to BTC, JPMorgan’s recent report demolishes this view. According to the report, the chart of the surging assets showed a rising pattern confirming different behaviors of different investors.

JPMorgan’s research showed how a rational investor would choose to have a combination of assets. Both retail as well as institutional investors have been quick to adopt a portfolio diversified across asset classes that provide investment opportunities in each class depending on their characteristics.

As per JPMorgan’s reports, inflows into gold and BTC have been noteworthy and have proven that the old theory of unidirectional shift from traditional to digital assets isn’t playing out. Rather, investors have been attracted by the growing popularity of BTC and are subsequently dividing their portfolios across gold and cryptocurrencies.

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Claiming that bitcoin has already replaced gold is ridiculous- Peter Schiff

Gold and BTC futures prices spike since February 2024 has reaffirmed the significant interest even among retail and institutional investors. However, this strategy is risk-mitigating and takes into consideration the market dynamics through ongoing portfolio optimization.

MicroStrategy amplifying BTC rally.

At the core of MicroStrategy’s business strategy is the emphasis on the acquisition and accumulation of BTC, which, in turn, is fortifying the rally of the cryptocurrency.

Thus, by pumping $1 billion in BTC this year into the market, MicroStrategy not only increased the digital currency’s market capitalization but also enhanced the probability of future market swings.

BTC’s price dynamics

Although BTC price has been on a decline in the recent sessions, the year-to-date performance stands out tremendously, registering a positive uptrend of over 61%. Nonetheless, the crypto fear gauge raises concern as extreme greed is observed in the market.

Having reached a new all-time high of over $73,000 last week, BTC briefly went down before having a bounce back, stabilizing around $65,000. The dominant cryptocurrency is finding support around $63,000 to $60,000 but it is likely to experience a further downward trend if it cannot sustain this level.

BTC price is $64,500 at the time of writing, which is a 10% decline in the past week. Meanwhile, the cryptocurrency fear and greed index is 79 which reflects extreme greed status

Analysts predict that BTC price could oscillate between $150,000 and $280,000 in the next few years. The approval of ETFs, the entry of institutional investors, and macroeconomic trends are expected to drive BTC’s quest in the coming months.

The revised year-end forecast of $150,000 for BTC from Standard Chartered gives an account of the positive sentiment in the coming decade. Moreover, the expectation of Ether ETF going through the approval process creates additional uptrend opportunities, with speculation that ETH might rally as high as $8,000 before the end of the year.

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Bitcoin at all-time high of over $73,000: What is fueling the surge in the crypto market?

Credit: Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.