In the second half of the year, the first cryptocurrency will continue to grow in price, ahead of gold in terms of pace, thanks to corporate purchases and growing support from the US states. Such conclusions came to JPMorgan, writes The Block.
Experts referred to the implementation of the Debasement Trade strategy, which became relevant for both assets at the end of 2024. At the moment, it has transformed and turned into a game with a zero amount, when one tool strengthens the position at the expense of another.
From the moment the peak was reached on April 22, gold has fallen by almost 8%, while bitcoin has risen in price by 18%for the same period. According to experts, this shift is also noticeable in investor flows: over the past three weeks, capital has left ETF to Dragmetal to Sports BTC-ETF and Crypto-ETF.
Data on futures show a similar trend – gold positions were reduced, while open interest in bitcoin contracts increased. At the beginning of the year, the picture was the opposite.
Experts associated the trend change with drivers characteristic of digital assets. Companies such as Strategy and Metaplanet are building up the first cryptocurrency purchases. Michael Saylor corporation for this plans to attract another $ 42 billion by 2027 and has already completed 60% of its original goal, experts explained.
JPMorgan also noted the initiative of the American states of New Hampshire and Arizona associated with digital gold.
As an additional factor, they called the “growing up” of the derivatives market. The JPMorgan was given an example to the purchase of Coinbase, Ninjatrader – Kraken, as well as obtaining Gemini license to offer such tools in Europe.
UBS reported on the reorientation of wealthy customers in Asia from dollar assets for gold, cryptocurrencies and Chinese markets.
The Galaxy Digital noted that Bitcoin is increasingly considered as a digital version of precious metalla, and interest from institutions, exchange funds and even governments is growing.
Nydig researchers announced the strengthening of the first cryptocurrency as a protective asset after the “release day” of US President Donald Trump. The QCP Capital came to similar conclusions.
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Source: Cryptocurrency
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