Bitcoin Wins Gold Victory in Investor Portfolio Allocation: JPMorgan
JPMorgan analysts noted that Bitcoin (BTC) distribution in investor portfolios exceeds that of gold when adjusted for volatility. Specifically, Bitcoin’s allocation is 3.7 times greater than gold. They also noted that there have been $9 billion in net inflows into Bitcoin ETFs since their inception, balancing outflows from Grayscale.
Bitcoin Reaches Milestone Against Gold
JPMorgan’s statement suggests that the potential Bitcoin ETF market would be $62 billion in size if gold were used as a reference. Additionally, February was definitely an optimistic period for the cryptocurrency market; The total market value increased by approximately 40% on a monthly basis to 2.2 trillion dollars. This rise was mainly driven by the 45% increase in Bitcoin and the 47% increase in Ethereum.
Although altcoins did not perform as strongly, they still recorded double-digit gains. Additionally, the decentralized finance (DeFi) and non-fungible token (NFT) sectors also saw gains during this rally. Additionally, net sales of Spot Bitcoin ETFs increased from $1.5 billion in January to $6.1 billion in February.
Additionally, the value of crypto market Bitcoin increased by 31% in a month, reaching an all-time high of over $73,800. This increase coincided with significant inflows into Spot Bitcoin ETFs. Similarly, crypto mining stocks reached new record highs in February.
Also Read: JPMorgan Sounds Alarm Over MicroStrategy’s $20 Billion Bitcoin Buying Spree
BTC Price Crashes
However, after reaching its peak, Bitcoin price experienced a significant decline today. As of the publication date of the article, BTC decreased by 5.86% to $68,105.40 on Friday, March 15, while maintaining its market value of $1.33 trillion. Interestingly, BTC’s 24-hour trading volume increased by 91.58% to $85.95 billion.
The recent decline in Bitcoin price is attributed to the increase in inflation rates, particularly reflected in the US Producer Price Index (PPI). PPI, which includes raw material costs affecting sales prices in February, increased by 0.6%, above the expected increase of 0.3%. The unexpected rise in inflation is likely to attract the attention of the Fed at its March meeting.
A significant liquidation event is also cited as another factor contributing to the decline in BTC’s price. According to CoinglassCoinglass data, a total of $270.69 million was liquidated in the last 24 hours, $207.44 million of which was from long positions. This significant liquidation increases the downward pressure on Bitcoin’s value.
Also Read: just-In: MicroStrategy Rushes to Acquire More BTC with $525 Million
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