In a report released the day before, JP Morgan’s analyst team revealed that the competition between bitcoin and gold has already begun, suggesting the possibility of a significant rise in bitcoin prices in the long run.
According to the report, since mid-October last year, more than $7 billion has been leaked from the Gold Exchange Fund (ETF), while the Grayscale Bitcoin Trust (GBTC) has recorded more than $3 billion in flow.
Source: The Block
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Analysts suggest that investors prefer bitcoin over gold, and that this trend will continue.
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The report estimates that gold held by individuals is mainly stored in the form of gold bars and gold coins, and the market capitalization of gold in circulation in the market including gold ETFs, excluding the central bank holdings, is $2.7 trillion.
In order for the current market capitalization of Bitcoin, which is currently $575 billion, to reach the same level as gold, it has to be 4.6 times higher than the current price, and in this case, it means that the price of Bitcoin is theoretically $146,000.
“There is no doubt that the competition between gold and bitcoin will continue in the future, given that millennials have a higher preference for’digital gold’ over traditional gold over time,” analysts said.
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