In a research note handed to clients on Oct. 6, JPMorgan Global Market Strategist, said leading investors would rather invest in bitcoin than gold.
Nikolaos believes the trend that fueled crypto’s bullish run late last year has resurfaced, Coindesk reports.
“There are tentative signs that the previous shift away from gold into bitcoin seen during most of Q4 2020 and the beginning of 2021 has started reemerging in recent weeks,” The London based Strategist explained.
A few days ago, bitcoin emerged as the best performing asset of 2021 ahead of stocks, commodities and gold, thereby increasing its popularity over other asset classes.
Another factor that may have influenced the drift according to Panigirtzoglou is “Bitcoin’s allure as an inflation hedge”, which has helped convince institutional investors to return to the crypto fold.
Bitcoin has soared by over 80% this year as compared to gold which fell by 6.5% within the same period.
In June, Nikolaos Panigirtzoglou lamented the rate at which institutional investors were pulling out money from cryptocurrency into stocks and gold to guard against the volatility of the crypto market.
“institutional investment in cryptocurrencies has dried up and even turned negative”, he said while speaking to CNBC.
Gold is generally seen as a stable asset that conserves value in times of inflation, but Panigirtzoglou claims it has failed to “respond in recent weeks to heightened concerns over inflation”, therefore giving bitcoin the freeway to lure institutional investors.
Impage Credit: Forbes, Az Coinnews.