The exodus of large investors from “Bitcoin” to gold

Institutional investors in Bitcoin appear to be dumping the cryptocurrency in favor of gold, reversing the recent trend that has occurred over the past two quarters, according to a new report from JPMorgan.

Analysts at JPMorgan told the bank’s clients that they felt institutional investors were abandoning bitcoin and moving back to gold.

In a note to investors, JPMorgan analysts said: “Flows into Bitcoin continue to deteriorate and indicate continued investment curtailment by institutional investors. Over the past month, the bitcoin futures markets have experienced the worst and most sustained liquidation since the bitcoin rally began in October.

This news came as the price of the most famous cryptocurrency continued to decline, with which the rest of the cryptocurrencies took to heavy losses the day before yesterday, as “Bitcoin” fell to nearly $30 thousand to recover and recover its losses somewhat, after it had reached its highest level. All in all at $65,000 in April.

The Bitcoin market has been steadily declining since May 12, when Tesla CEO Elon Musk said his company had suspended the purchase of cars using cryptocurrency, due to concerns that the arithmetic “mining” process had led to negative environmental impacts. The entire cryptocurrency market is a loss of $ 300 billion on the same day.

“Institutional investors may flee Bitcoin because they see that the previous two-quarter uptrend is over, and thus they seek to stabilize traditional gold away from the rapid transformation of digital gold,” strategists at JP Morgan, led by Nikolaus Banegertzoglou, wrote in their memo to investors. Or maybe they view the current (Bitcoin) price as too high compared to gold, and therefore they do the opposite of what they did in the previous two quarters, namely, they sell bitcoin and buy gold.”

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