As of the time of writing, Bitcoin 
$76,882 is attempting to maintain the support level of $60,000; however, the loss of $61,700 has diminished motivation. BTC is at risk of falling to $57,000. JPMorgan experts have made bold predictions for both Gold and Bitcoin. What are the expectations? How will geopolitical tensions influence the future prices of Gold and Bitcoin?
JPMorgan on Bitcoin and Gold
Iran’s missile activity this week has contributed to the decline in Bitcoin prices. According to JPMorgan analysts, BTC has reached its lowest level in the past 15 days, which could lead to a beneficial process for Bitcoin. In a market note released today, J.P. Morgan Global Markets Strategy analysts Nikolaos Panigirtzoglou, Mika Inkinen, Mayur Yeole, and Krutik P Mehta stated:
“Increasing geopolitical tensions and the upcoming U.S. elections can strengthen both gold and Bitcoin, which some investors refer to as a ‘debasement trade.’”
Initially, analysts noted that Gold prices were not significantly affected by geopolitical tension, but they recalled the recent rise in the last quarter.
“This increase in Gold prices is influenced by a 4-5% drop in the dollar and a significant decline of 50-80 basis points in real U.S. Treasury yields. However, the appreciation of gold goes beyond what these factors alone could indicate, suggesting the resurgence of ‘value loss trading.’”
Dreams and Reality
These predictions do not appear very convincing. Although Bitcoin is often viewed as digital gold, it has been moving contrary to physical gold. Due to its own issues, Bitcoin has not performed as expected during the SPX rally. Recently, while missiles were launched, Bitcoin experienced declines similar to the SPX.
One of the recent CryptoQuant analysts reminded that despite decreasing yields and expanding M2 Money Supply, Bitcoin has not been following gold’s trajectory.
“In 2008, as the yields of 13-week Treasury Bonds fell, gold prices rose from $590 to $1,900 per ounce by 2011. A similar trend is emerging now as gold climbs from around $2,000 to approximately $2,700. Bitcoin, often regarded as ‘digital gold,’ may follow this model in the future, though not at present.”
