I always have mixed feelings when I cover a JP Morgan investment analysis.
On the one hand, if the information is true, it is valuable. On the other hand, large financial institutions like JP Morgan put out certain news in order to manipulate markets and buy the dip.
The latest analysis from JP Morgan claims that institutional investors prefer Bitcoin to gold as a hedge against inflation, and it isn’t very hard to see why.
The gains from cryptocurrencies and digital assets large volatility swings are unheard of in most traditional financial instruments.
On the other hand, it cannot be ignored that these large financial institutions and banks have a vested interest against retail traders and investors.
So we have to wonder, is JP Morgan simply saying this in order to drive down the price of Gold?
Is their true intention to buy up cheap gold as a hedge against fears of a coming economic crash?
Here’s what retail traders and investors are saying about the recent analysis from JP Morgan:
JP Morgan claims that institutional investors now prefer BTC to XAU in terms of a hedge against inflation, but are they simply trying to drive the price of XAU down in order to buy cheap? https://t.co/JyQsnwjhWg#XAUUSD #BTC #Bitcoin #JPMorgan
— Vince Quill (@VinceQuill) October 7, 2021
2 days ago: JPMorgan’s Dimon Calls Bitcoin ‘Fool’s Gold’
Today: JP Morgan says institutional investors are moving away from gold to bitcoin.
— Dan300 (@DanS916) October 7, 2021
The alleged interest expressed by institutional investors in BTC was reported by Bitcoin Magazine:
“The re-emergence of inflation concerns among investors has renewed interest in the usage of bitcoin as an inflation hedge,” JPMorgan said. “Institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold.”
The big bank added that the prior trend of institutional money flowing out of gold and into bitcoin has reemerged in recent weeks, per the report. The validation of bitcoin as a better store of value than gold among big investors has encouraged an increased flow of money into BTC.
JP Morgan, on Bitcoin & Gold, just yesterday. pic.twitter.com/CDtq0mObYt
— Pablo Guerra 🪙 (@Renovatio_News) October 23, 2020
YTD returns in #Bitcoin
Gold ⬇️ 44%
S&P 500 ⬇️ 29%
Apple ⬇️ 33%
Tesla ⬇️ 41%
JP Morgan ⬇️ 27%
— Priced in ₿itcoin ∞/21M (@PricedinBTC) August 24, 2021
Just 2 days ago, the JP Morgan chief was calling Bitcoin fools gold according to Yahoo Finance:
Jamie Dimon in an interview with Axios slammed bitcoin for having “no intrinsic value,” saying “regulators are going to regulate the hell out of it.”
He doesn’t expect that bitcoin will disappear, but he believes that there is a looming threat that it will be deemed illegal similar to the bitcoin bans that China has implemented. For that reason, he describes bitcoin as “a little bit of fool’s gold.”
The JPMorgan chief strongly believes that bitcoin should be regulated considering that one of its main use cases is as a payment method.
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