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JPMorgan Analysis: Bitcoin Surpasses Gold in Investor Portfolios

In a recent analysis conducted by JPMorgan, Bitcoin has emerged as a preferred asset over gold in investor portfolios, particularly when considering adjusted volatility metrics.

According to Nikolaos Panigirtzoglou, a managing director at JPMorgan, Bitcoin’s allocation now surpasses that of gold by a factor of 3.7. This shift is largely attributed to substantial inflows into spot Bitcoin ETFs, totaling over $10 billion since their approval in January. Analysts project the potential market size for these ETFs to reach $62 billion.

JPM Securities anticipates further growth in the spot Bitcoin ETF market, with expectations of expansion to $220 billion within the next two to three years. Such developments are expected to have a notable impact on Bitcoin’s price trajectory.

The influx of funds into Bitcoin has already demonstrated its positive effects, with the cryptocurrency’s market cap increasing by 45% in February alone. Notably, net sales for spot Bitcoin ETFs surged to $6.1 billion in February, a significant leap from January’s $1.5 billion.

March 12 witnessed record-breaking inflows, with over $1 billion invested in a single day. Analysts foresee continued growth in these figures, particularly with upcoming events such as the Bitcoin halving. The halving event, which reduces the daily supply of Bitcoin by half, could potentially lead to a supply crisis within the next six months, according to Ki Young Ju, CEO of CryptoQuant.

Bitcoin’s resurgence comes on the heels of a prolonged crypto winter spanning nearly three years. The approval of spot Bitcoin ETFs marks a pivotal moment for the cryptocurrency’s price trajectory, propelling it past its previous all-time high of over $69,000 and fostering institutional adoption, notably led by BlackRock.

This shift in investor sentiment towards Bitcoin highlights its growing prominence as a mainstream investment asset and underscores the evolving dynamics of the global financial landscape.

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