Analysts at JPMorgan Chase & Co have asserted that Bitcoin (BTC) has appropriated a huge chunk of gold’s (XAU/USD) market share. The analysts pointed out the depreciating difference in funds allocated in the yellow metal and BTC, adding that the shift “represents the transfer of billions in cash.”
The cryptocurrency community has argued for years that Bitcoin is the digital representation of gold, considering both assets share similar features, like limited supply, and serve as decent hedges.
Many cryptocurrency enthusiasts have asserted that large institutional investors will soon begin trooping into Bitcoin once they realize its superiority over gold.
Meanwhile, 2020 has been a very good year for the benchmark cryptocurrency in terms of institutional investor turn out. This inflow can be seen with Grayscale’s recent foray into Bitcoin, celebrated names like Paul Tudor Jones III and Stan Druckenmiller, equity behemoths like Guggenheim Partners.
Not surprisingly, gold ETFs have begun recording significant investment liquidations. Quantitative strategists at JPM, led by Nikolaos Panigirtzoglou, confirmed this development in a recent Bloomberg report.
Nikolaos noted that money has poured out of gold and into Bitcoin since October and that this trend is only going to persist into the near future as more institutional investors scramble for cry[ptocurrency positions.
Key BTC Levels to Watch — December 9
Bitcoin suffered a massive dip over the past 24 hours, which caused the cryptocurrency to shed about $1,300. BTC has recovered a bit since the fall to the lower-$18,000 area.
The dip was effectively caught by the $17,635 support line, where a sharp bounce occurred. Meanwhile, the cryptocurrency is currently struggling to get back into the $18,800 – $19,500 consolidation area, where a retest of the $20k ATH could be carried out.
Meanwhile, our key resistance levels are at $15,500, $18,800, and $19,000. While our key support levels are at $18,200, $18,000, and $17,635.
Total market capital: $545 billion
Bitcoin market capital: $341 billion
Bitcoin dominance: 62.5%
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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