Gold Is Still the Safe-Haven King, While Bitcoin Loses Out: JP Morgan

BitcoinThe safe harbor story that does not make his mythical status, according to JP Morgan, where investors prefer to put their money in gold in the midst of the recent market volatility encouraged by President Trump’s global trade war.

Analysts from the TOP Investment Bank said in a Thursday report that through gold turns and futures received most of the investment campaign, because speculators are looking for a safe gamble.

Gold’s price has risen since last year and this week a new high reached more than $ 3,660. Bitcoin has fallen since then broke a new record In January. It has exchanged sideways this month and is more than 20% discount on its record high near $ 109,000, trained on January 20, the day of the inauguration of US President Donald Trump.

Bitcoin has in the past correlated For the precious metal and proponents, the top cryptocurrency describe as ‘digital gold’. But the active – which started acting in 2009 – has correlated in particular with American shares, especially in recent years Tech stock.

“Bitcoin does not benefit from the Safe Haven streams that have supported gold in recent months,” said the JP Morgan report and noted that although investors have pumped money into gold ETFs, speculators have cashed in the new American crypto ETFs.

Bitcoin ETFs In the US in December briefly caught up with their golden counterparts, thanks to the price increase of the virtual currency before she lost ground to them.

Trump’s November election Helped to stimulate the crypto prices, because the Republican campaigned about helping the digital assets industry by unfairly assuming industry the different regulations.

But a combination of geopolitical uncertainty, the aggressive rates of President Trump and the fears for a recession have led investors to go to the ultimate Safe-Haven assets: gold.

Bitcoin changed owner on Wednesday near $ 85,000, roughly where it started in April, according to to Crypto data provider Coingecko.

It is done better than large stock indexes that have lost ground this month with the S&P 500 and Tech-Heavy Nasdaq both by around 6%.

Edited by James Rubin