The report of the investment bank JP Morgan says that the fall in the value of bitcoin was the result, among other things, of the transition of some large investors to gold.
Today the cryptocurrency is trading at $ 38,900. The day before, the bitcoin rate fell below $ 31,000. Support returned on Thursday night.
Institutional investors, who were considered the main drivers of Bitcoin's growth to $ 64,000, seem to have changed their tactics. JP Morgan analysts believe that the return of this category of players to gold has led to a massive Bitcoin dump.
Using data from the Chicago Stock Exchange, the researchers found that bitcoin futures are showing the strongest decline since the end of last year, that is, on the eve of the next "bullish" cycle.
Gold is growing in price this week. On May 20, the price of a troy ounce of the main precious metal approaches $ 1900. Over the past month, the Bitcoin-focused futures market has experienced the most powerful liquidation since October.
At the same time, JP Morgan analysts still adhere to the point of view that in the long term, the largest digital currency is still aimed at growth. The BTC rate should reach $ 140,000 in the future.
The rally will resume after the institutional portfolios are balanced.
First of all, this refers to the share of gold and bitcoin in the portfolios of large players who prefer to bet on safe assets. Bitcoin will consolidate the status of a haven asset in the coming years, the review notes.
Note that in the winter, JP Morgan analysts published a report, which said that the fair price of bitcoin would be $ 146,000. In annual terms, the growth in the value of BTC amounted to almost 300%. The cryptocurrency is currently trading at January 2021 values.