Bitcoin’s intrinsic value will rise in the coming months while gold may struggle as institutional investors flock to crypto, JPMorgan says

Bitcoin’s intrinsic value will rise in the coming months while gold may struggle as institutional investors flock to crypto, JPMorgan says

JPMorgan strategists said on Tuesday that gold will suffer in the long-term as more institutional investors adopt bitcoin. The strategists noted that in the last two months, digital asset manager Grayscale's bitcoin trust saw an inflow of nearly $2 billion, while gold ETFs saw outflows of over $7 billion.JPMorgan also said bitcoin's intrinsic value will rise significantly over the coming months as mining activity improves. Visit Business Insider's homepage for more stories.

Institutional investors flocking to bitcoin could put downward pressure on gold in the longer-term, according to a group of JPMorgan strategists led by Nikolaos Panigirtzoglou.

In a Tuesday note, they said that bitcoin's near-term price is "skewed to the downside," while gold looks more positive. However, they see the medium- to longer-term trending in the opposite direction. 

"The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced," JPMorgan said. "If this medium to longer term thesis proves right, the price of gold would suffer from a structural flow headwind over the coming years."

The strategists noted that in the last two months, digital asset manager Grayscale's bitcoin trust saw an inflow of nearly $2 billion, while gold ETFs saw outflows of