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Pro traders buy the Bitcoin price dip while retail investors chase altcoins

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Bitcoin (BTC) has been struggling to sustain the $55,000 support level for the past 16 days, or basically since the April 17 record-high $5 billion long contracts liquidation. The rejection that took place after the $64,900 all-time high had a devastating impact on the sentiment of retail traders, as measured by the perpetual futures funding rate significant drop.

However, despite Bitcoin’s recent underperformance and today’s 6.5% drop, pro traders have been buying the dip for the past 24 hours. These whales and arbitrage desk movements are reflected in the OKEx futures long-to-short ratio, as well as Bitfinex’s margin lending markets. As this buying occurs, retail traders are mainly quiet, which is reflected in the neutral perpetual funding rate.

USDT-margined perpetual futures 8-hour funding rate. Source: Bybt

As depicted above, the perpetual futures (inverse swaps) 8-hour funding rate has been below 0.05% for the past couple of weeks. For the end-of-month contracts, prices vastly differ from regular spot exchanges, reflecting the imbalance from longs and shorts leverage.

This discrepancy is why retail traders tend to prefer perpetual futures, albeit with the varying carry cost caused by the funding rate changes.

The current 8-hour fee is equivalent to a 1% weekly rate, signaling a slight imbalance on longs. However, this level is well below the 0.10% and higher rates seen in early April. This data is clear evidence that retail traders aren’t comfortable adding Bitcoin long positions despite the 9% correction in two days.

On the other hand, the top traders’ long-to-short indicator reached its highest level in 30 days, signaling buying activity from whales and arbitrage desks. This indicator is calculated by analyzing the client’s consolidated position on the spot, perpetual and futures contracts. As a result, it gives a clearer view of whether professional traders are leaning bullish or bearish.

OKEx top traders long-to-short ratio. Source: Bybt

As shown above, the current OKEx futures long-to-short ratio currently favors longs by 94%. This buying activity was initiated in the early hours of May 4, as Bitcoin broke below $55,000. More importantly, it signals even more confidence than April 14, when BTC hiked to its $64,900 all-time high.

However, to confirm whether this movement is widespread, one should also evaluate margin markets. For example, the leading exchange (Bitfinex) holds over $1.8 billion worth of leveraged Bitcoin positions.

BTC price (orange, left) vs. Bitfinex long-to-short margin ratio (blue, right). Source: TradingView

Bitfinex shows spectacular growth in the BTC margin markets with longs over 50x the amount borrowed by shorts. These levels are unprecedented in the exchange’s history and confirm the data from OKEx’s futures markets.

There’s no doubt that professional traders are ultra-bullish despite today’s Bitcoin dip. As for the lack of appetite from retail traders, their focus seems to be currently on altcoins.

Currently, 18 of the top 50 altcoins have rallied 45% or higher in the past 30 days.

The question is, can the altcoin rally continue if BTC fails to produce a new all-time high over the next couple of weeks?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Pro traders buy the Bitcoin price dip while retail investors chase altcoins

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Waves, Celo, and Injective Protocol (INJ) breakout as DeFi reawakens

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Bitcoin (BTC) extended its relief rally on Tuesday and reclaimed a market capitalization above $1 trillion.

While many traders panicked during Bitcoin’s recent fall below $47,000, fund manager Dan Tapiero said that he spotted a rare TD sequential buy signal during the low. The last time this signal was seen was in March 2020 when Bitcoin price traded near $3,600. Tapiero believes Bitcoin remains on target to reach $100,000 this year.

However, even after the recent rise above $55,000, Bitcoin’s market dominance continues to lag at 49.5%, according to CoinMarketCap data. This shows that crypto investors are focusing on altcoins, with several hitting new all-time highs.

Crypto market data daily view. Source: Coin360

The altcoin season is not entirely driven by retail investors. A recent report by crypto investment advisory firm Two Prime Digital Assets highlights that the eightyfold growth in Ether (ETH) options open interest, from $50 million to $4 billion in a year, points toward hedging by institutional money managers to protect their “net long portfolios against outsized volatility events.” Even the Ether futures market has increased by 20, cementing the involvement of institutional investors.

Keeping the focus on altcoins, let’s study the fundamentals and technicals of three tokens that have done well in the past few days.

WAVES/USDT

Many crypto enthusiasts are interested in investing in digital assets, but they do not have the required trading experience. Therefore, they miss several opportunities or end up leaving money on the table. Others work full time and, therefore, cannot devote time to trading. For such investors, a well-devised algorithmic trading product could be suitable, but it comes with its own risk.

Waves launched a new algorithmic trading investment product called “Lambo Investments” on April 15. The protocol’s exchange platform announced it would give away a Lamborghini Huracan to a random investor in the product, which could have lured traders.

Along with decentralized finance (DeFi) and algorithmic trading, Waves has also made a splash in the nonfungible tokens (NFTs) sector. While the overall NFT craze has subsided, select investors continue to focus on them. The first Waves Duck NFT, called “Perfection,” was sold for 1 million Neutrino USD (USDN) — an algorithmic stablecoin pegged to the U.S. dollar and collateralized by the native Waves token, WAVES — on Sign Art on April 12.

To further boost growth, Waves founder and CEO Sasha Ivanov recently laid out ambitious plans to reach $10 billion in total value locked by October and average 10 million daily transactions by February 2022. Traders are likely to keep a close watch on the developments, which could decide the level of investors’ interest in the project.

WAVES rallied from an intraday low of $11.09 on April 23 to an all-time high of $21.09 on April 27, a 90% gain in five days. However, the long wick on April 27’s candlestick suggests profit-booking at higher levels.

WAVES/USDT daily chart. Source: TradingView

The WAVES/USDT pair could give back some of its gains and drop to the $16–$17 zone. If the bulls can flip this zone into support, it will suggest that sentiment remains positive and traders are accumulating on dips.

The 20-day exponential moving average (EMA) of $14.64 has started to rise, and the relative strength index (RSI) is in the positive zone, indicating the path of least resistance is to the upside.

A strong bounce off the support zone could result in a retest of $21.09. If buyers can drive the price above this resistance, the pair could resume its uptrend and reach $25.

This bullish view will be invalidated if the bears sink the price below the 20-day EMA. Such a move could pull the price down to the 50-day simple moving average (SMA) of $12.65.

INJ/USDT

Injective Protocol recently announced that it secured $10 million in funding from several investors, including Pantera Capital and billionaire Mark Cuban, for its DeFi protocol, which is alleged to have the best of both centralized and decentralized exchanges. Injective’s aim is to build a decentralized competitor to Robinhood.

On the development front, the protocol announced on April 15 that it had achieved “Trezor support for the EIP-712 signature standard,” which will allow Trezor users to access Ethereum-based applications.

Injective has been partnering with several blockchains to improve the experience for its users. Thus far in April, it has announced collaborations with API3, Harmony, Staked, Litentry, Persistence, Big Data Protocol and Klaytn.

Additionally, periodic token drops in Equinox Staking may have been an added attraction to the investors.

Injective’s native token, INJ, rose from $10.91 on April 20 to an all-time high at $21.55 on April 22, recording a 97% increase in three days. The bulls could not sustain even higher levels on April 20, as seen from the long wick on the candlestick.

INJ/USDT daily chart. Source: TradingView

This encouraged the bears, who tried to trap the bulls and start a correction. However, the buyers purchased the dip to the 50-day SMA ($13.40) on April 23 and defended the 20-day EMA ($15.26) on April 23. This suggests that the sentiment remains positive and the bulls are accumulating on dips.

The buying momentum picked up on April 26, and the bulls cleared the first hurdle at $18.15. If the bulls can sustain the price above $18.15, the INJ/USDT pair could rise to $21.55. A break above this resistance could start the next leg of an up-move that may reach $26.44.

Contrary to this assumption, if the bears pull the price below $18.15, a drop to the 20-day EMA is likely. A break below this support would signal that the momentum has weakened, and the pair may drop to the 50-day SMA.

CELO/USDT

CELO was previously featured on Cointelegraph on Jan. 26 when its price was $3.24. From there, the token rallied to an all-time high of $7.23 on April 21, a 123% rally in just under three months.

Celo announced on April 20 that Deutsche Telekom made a “significant purchase” of CELO tokens through its strategic investment fund, Telekom Innovation Pool. Although the size of the investment was not disclosed, it is likely to be a major sentiment booster for the token.

A new gas-efficient bridging standard dubbed “Optics,” connecting Celo to Ethereum, was announced on April 21. This is the first step toward building an open, connected blockchain ecosystem, which eventually will include Cosmos, Polkadot and others.

The payments platform announced the launch of the stablecoin Celo Euro (cEUR) on the mainnet on April 22. This is the second stablecoin, after Celo Dollar (cUSD) — which was launched on Celo in June 2020. This increases the user base for Celo users who want to send or receive money from relatives and friends.

CELO has been consolidating between $3.50 and $5.76 for the past few days. The bears pushed the price below the support of the range on March 25, but the bulls reclaimed the level on March 26, indicating buying at lower levels.

CELO/USDT daily chart. Source: TradingView

The sharp rally on April 20 and 21 propelled the price above the overhead resistance of the range, but the bulls have not been able to consolidate their advantage. The bears pulled the price back into the range on April 22.

Although the CELO/USDT pair broke below the 20-day EMA ($5.01) on April 23, the bulls purchased the dip to the 50-day SMA ($4.39). The buying momentum picked up again, and the bulls cleared the $5.76 hurdle on April 25 but could not sustain the breakout.

The Doji candlestick pattern on April 26 and the inside day candlestick pattern on April 27 suggest uncertainty among the bulls and the bears. If the bulls sustain the price above $5.76, a retest of $7.23 may be in the cards. A breakout of this resistance could result in a rally to $8.02.

Conversely, if the bears sink the price below the 20-day EMA, it will suggest that the pair could remain range-bound for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.

Waves, Celo, and Injective Protocol (INJ) breakout as DeFi reawakens

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Pros say Bitcoin’s ‘very healthy’ correction ‘builds ground for more stable growth’

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Bitcoin and the wider cryptocurrency market took a beating in the late hours of April 22 and intense selling saw (BTC) price dip below $48,000 in a move that came as a relief to quant analysts like PlanB who were worried that the price growth was showing signs of being inorganic. 

A variety of factors have been identified as being the cause of the drop in price, including an overcrowded futures market and heavy selling activity from small to medium-size whales. Aside from the activity of whales in the crypto market, the most impactful development was the Biden administration’s proposal to raise the capital gains tax on individuals making more than $1 million per year.

Data from Cointelegraph Markets and TradingView shows that a heavy wave of selling led to a break below the $50,000 support level for Bitcoin during the early trading hours on April 23, dropping the price to a low of $47,500 before a few courageous buyers arrived to lift it back above $49,000.

BTC/USDT 4-hour chart. Source: TradingView

The breakdown below $50,000 marks a 25% drawdown from the recent all-time high and now has Bitcoin trading at levels last seen in early March.

Bitcoin inflows to exchanges preceeded the downturn

When asked about last night’s price action, Micah Spruill, the managing partner and chief investment officer at S2F Capital indicated that the selloff “appears to be an attempt to pin the price below the key $50,000 level where a significant number of put options would expire in the money.”

Spruill noted that “bearish net inflows of BTC transfers to exchanges” was the likely catalyst that “drove us down to the next level of on-chain support around $47,500,” and also highlighted the fact that “most of the coins moved on-chain during this most recent selloff were recently acquired coins and not long term holder coins.”

Net transfer of Bitcoin to/from exchanges. Source: Glassnode, S2F Capital

According to Élie Le Rest, a partner at digital asset management firm ExoAlpha, being able to hold the current price level “would confirm the accumulation pattern by institutional investors at or below $50,000, leaving room to grow for Bitcoin in the coming weeks/months.”

If the price should fall further, Le Rest identified $43,000 as the next strong support level and he highlighted the fact that altcoins really began to “flourish” the last time BTC traded in this range in February.

Le Rest said that “getting back to this level may trigger a strong downside for the altcoin market as they would have lost all of their recent gains,” potentially leading to a rise in Bitcoin dominance back above 60%.

Le Rest said:

“Either way, this kind of market pullback is very healthy as it contributes to deleveraging market participants and builds ground for a more stable growth.”

Traders rush to the exits

To help better understand the rapid selloff in the price of Bitcoin, Jarvis Labs co-founder Ben Lilly offered an analogy that alluded to traders acting like passengers on a boat to help describe what happened as a “spontaneous synchronization.”

Lilly said:

“When a boat starts to tip, a few people lean first. The more it leans, the more people also lean. Then bam, it tips…”

Lilly pointed to several opportunities that traders used to make money off this downturn including “selling the altcoin euphoria” as well as profiting from the futures carry trade. He also highlighted the fact that capital was being used to short, not to buy in these instances.

As an indication of how rapidly the market sold off and the degree to which it caught even institutional traders by surprise, Whalemap, an on-chain analytics firm, posted the following tweet highlighting the significance of the $55,000 level.

As for what analysts think about buying BTC below $50,000, Whalemap posted the following chart and said: 

“Hourly moving losses are higher than profits. Historically that was a good buying opportunity.”

Bitcoin moving profits and losses (MPL). Source: Whalemap

The market now anxiously awaits the next major move in Bitcoin price to help determine if this is merely an overdue correction that will lead to a continuation of the bull market or the opening salvo of the next bear market cycle.

Altcoin prices collapse

Bitcoin’s drawdown hit the altcoin market especially hard, resulting in double-digit losses for a majority of the top 100 tokens.

Daily cryptocurrency market performance. Source: Coin360

Ether (ETH), the top altcoin by market cap, was pummeled and trades more than 12% away from its April 22 all-time high of $2,640. Meanwhile, XRP and DOGE have been the hardest hit tokens in the top 10 with their prices falling more than 20%.

Three notable exceptions to the current sell-off include Compound (COMP), Waves (WAVES) and Helium (HNT), which managed to overcome the selling by posting gains of 13%, 9% and 8% at the time of writing.

The overall cryptocurrency market cap now stands at $1.862 trillion and Bitcoin’s dominance rate is 50.7%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Pros say Bitcoin’s ‘very healthy’ correction ‘builds ground for more stable growth’

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BTC December futures reach $73,500 — Is everyone flipping ultra bullish?

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Bitcoin (BTC) has been struggling to break the $60,000 resistance for almost a month. But despite the impasse, BTC futures markets have never been so bullish. While regular spot exchanges are trading near $59,600, the BTC contracts maturing in June are trading above $65,000.

Futures contracts tend to trade at a premium, mainly on neutral-to-bullish markets, and this happens on every asset, including commodities, equities, indexes, and currencies. However, a 50% annualized premium (basis) for contracts expiring in three months is highly uncommon.

BTC futures curve, in USD. Source: bitcoinfuturesinfo.com

Unlike the perpetual contract — or inverse swap, these fixed-calendar futures do not have a funding rate. Thus, their price will vastly differ from regular spot exchanges. Fixed-calendar futures eliminates eventual funding rates’ spikes from the buyers’ perspective, which can reach up to 43% per month.

On the other hand, the seller benefits from a predictable premium, usually locking longer-term arbitrage strategies. By simultaneously buying the spot (regular) BTC and selling the futures contracts, one gains a zero-risk exposure with a predetermined gain. Thus, the futures contracts seller demands higher profits (premium) whenever markets lean bullish.

The three-month futures usually trade with a 10% to 20% versus regular spot exchanges to justify locking the funds instead of immediately cashing out.

OKEx BTC 3-month futures annualized premium (basis). Source: Skew.com

The above chart shows that even during the 250% rally between March and June 2019, the futures’ basis held below 25%. It was only recently in February 2021 that such phenomena reemerged. Bitcoin surged by 135% in 60 days before the 3-month futures premium surpassed the 25% annualized level on Feb. 8, 2021.

While professional traders tend to prefer the fixed-month calendar futures, retail dominates perpetual contracts, avoiding the expiries’ hassle. Moreover, retail traders consider it expensive to pay 10% or larger nominal premiums, even though perpetual contracts (inverse swaps) are more costly when considering the funding rate.

BTC coin-based perpetual futures funding rate. Source: Bybt.com

While the recent 0.20% funding rate per 8-hour is extraordinary, it is definitely not unusual for BTC markets. Such a fee is equivalent to 19.7% per month but seldom lasts more than a couple of days.

A high funding rate causes arbitrage desks to intervene, buying fixed-calendar contracts and selling the perpetual futures. Thus, excessive retail long leverage usually drives the futures’ basis up, not the other way around.

As crypto-derivatives markets remain largely unregulated, inefficiencies shall continue to prevail. Thus, while a 50% basis premium seems out of the norm, one must remember that retail traders have no other means to leverage their positions. In turn, this causes temporary distortions, although not necessarily worrisome from a trading perspective.

While exorbitant funding rate fees remain, leverage longs will be forced to close their positions due to its growing cost. Thus, December’s $73,500 contract does not necessarily reflect investors’ expectations, and such a premium should recede.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

BTC December futures reach $73,500 — Is everyone flipping ultra bullish?

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VORTECS Report: Storage coins rev up gains as Markets Pro rides the green wave

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It’s been another great week for altcoins as the total market capitalization of all cryptocurrencies moves within spitting distance of the $2 trillion mark.

And it’s been equally positive for the Cointelegraph Markets Pro platform, which tracks crypto market conditions and real-time headline news in the blockchain industry to deliver market intelligence for every investor.

Markets Pro offers two unique features: The VORTECS™ Score, an algorithmically-derived weighted score that compares current market conditions to historically-similar marketscapes, and NewsQuakes™ — the industry’s most rapid aggregator of market-moving news, analyzed and collated from over a thousand primary sources every minute.

In this weekly report we analyze the most important highlights from the week’s events on Markets Pro.

Top VORTECS™ Score gains this week

Between March 26 and April 1, the three best-performing assets identified by Cointelegraph Markets Pro were Storj (+121%), Filecoin (+115%), and Holochain (+111%). All three rode green waves powered by patterns of trading and social activity that the VORTECS™ model has seen before — as described in our description of how the algorithm works.

Analyzing STORJ

As the graph above demonstrates, the cloud storage token STORJ recorded a streak of high VORTECS™ scores, marked by the first red circle, roughly 60 hours before the price spike on April 1 (first and second red boxes).

This price increase could also be explained by the effect of Storj-USDT margin swaps being listed on Huobi Futures the same day, an announcement captured in a NewsQuake™. Those using Markets Pro intelligence in their market research had the advantage of this powerful dual-validation pointing to both historically auspicious market conditions and favorable news around the asset following its recent listing on Coinbase.

Analyzing Filecoin (FIL) and Holochain (HOT)

Indeed, this has been a good week for storage coins. The second-best performer, Filecoin, pulled off a rally that saw it appreciate from around $125 to $233 in two days.

As seen in the graph above, some 24 hours before the price took off Filecoin’s VORTECS™ Score ventured into the 80+ territory for a few hours, marked by the red circle.

The rise of another big winner of the week, Holochain (seen below), also unfolded following a sequence of strong VORTECS™ scores, ranging from high 60s to high 70s, with a peak of 82 (red circle in the graph) coming around 50 hours before the asset began its ascent from $0.010 to $0.019.

Understanding VORTECS™: The relationship between the score and Newsquakes™

Some users wondered whether NewsQuakes™ are a constituent part of the VORTECS™ score. The short answer is no. These are two completely different functionalities within Markets Pro that can complement each other but can also be used separately.

In fact, some of the NewsQuakes™ feature assets for which the score is not yet generated: One example is this week’s announcement of a partnership between DAFI and DIA saw the latter asset, not yet indexed by the VORTECS™ model, appreciate by almost 22%.

That said, oftentimes the two work in conjunction. The example of Filecoin already mentioned above showcases how a high VORTECS™ score and a subsequent NewsQuake™ can be used to boost users’ confidence that the conditions for a coin are favorable.

In other cases, a positive VORTECS™ score can follow the news: Once a favorable announcement is absorbed by market participants, trading and social conditions can align into a pattern that the model identifies as bullish. And sometimes, the two can be completely unrelated.

Analyzing 0x (ZRX)

The graph above shows the price of 0x starting to climb steadily after the news of the asset’s listing on OKEx went public — all while the VORTECS™ score remained neutral.

Testing results: Week’s top strategies

This week, 17 of the 42 VORTECS™ strategies currently tested outperformed both Bitcoin and an evenly weighted portfolio of all the top 100 altcoins. Of those strategies, 8 were score-based (Buy at VORTECS™ X  / Sell at VORTECS™ Y) and 9 were time-based (Buy at VORTECS™ X / Sell after Y hours).

The table below contains information on ROI that the top-5 strategies of the week have generated up to April 1st 2021. For more context, you can also see these strategies’ monthly and all-time returns (tracked since January 5th 2021). 

These strategies are designed to represent benchmarks for the VORTECS™ model’s aggregate performance. To discover how these tests are performed, consult the methodology help file.

Testing results: All-time leaders

The table below presents three best all-time strategies in each category (score-based and time-based) and their performance this week. As the table demonstrates, strategies that do well in the long run can have a downward blip in any given week: Buy at 90 / Sell after 168 hours is a particularly conspicuous example this time. At the same time, two of the all-time best have also had a solid showing this week.

New alerts system

A total of 107 VORTECS™ hit Markets Pro users this week, featuring 27 different coins.

One of the most frequent requests we’ve been getting from the community is to enable notifications at different levels of the VORTECS™ score. There are now 12 dedicated Discord channels designed to alert subscribers when an asset goes above or below a specific threshold.

Powerful NewsQuakes™

A total of 86 NewsQuake™ notifications went out to the Cointelegraph Markets Pro community this week, including 44 exchange listings, 25 partnerships, and 17 staking announcements.

Markets Pro also tracks the most consequential news identified by NewsQuakes™ and the price action of various crypto assets following the headline. This week the most consequential news items were followed by significant price gains over the course of the week:

· Storj listing on Coinbase: +161% peak return

· Ankr Network listing on Coinbase: +109% peak return

· Filecoin’s partnership with Chainlink: +48% peak return

Cointelegraph Markets Pro is available exclusively to subscribers on a monthly basis at $99 per month, or annually with two free months included. It carries a 14-day money-back policy to ensure that it fits the crypto trading and investing research needs of subscribers, and members can cancel anytime.

Important disclaimer

Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing. Consult your financial advisor before making financial decisions. Full terms and conditions.

VORTECS Report: Storage coins rev up gains as Markets Pro rides the green wave

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Bitcoin is outshining gold in the battle of the safe havens

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As the Bitcoin (BTC) price edges closer to $59,000, its value relative to gold is approaching new all-time highs, possibly hinting at the emergence of a new preferred store of value.

Measured against gold, Bitcoin’s price reached 34.94 ounces on Tuesday. The BTC-gold comparative peaked at 35.35 ounces on March 13 as Bitcoin surged past $61,000.

Bitcoin continues to outperform gold by a significant margin. | Chart via BuyBitcoinWorldwide

Bitcoin’s value relative to gold has more than doubled over the past three months and has grown nearly sevenfold since October 2020.

Gold futures, meanwhile, plunged below $1,700 a troy ounce Tuesday on the Comex division of the New York Mercantile Exchange. The price bottomed at $1,676.50, marking a new three-week low. Since peaking above $2,050 a troy ounce in August 2020, bullion has corrected nearly 18%.

2020 was a big year for gold, as the yellow metal set new all-time highs in every major currency before toppling $2,000 per U.S. dollar for the first time. Bullion ended the year with a gain of around 22%. Still, that paled in comparison with Bitcoin’s 265% yearly return.

With the recent $1.9 stimulus package fueling inflation fears, assets like gold and Bitcoin should, in theory, perform well as investors hedge their bets against the declining dollar. However, the recent rise in bond yields may have taken some of the shine away from gold.

Others, even some prominent analysts like Bloomberg’s Mke McGlone, believe gold is losing ground to Bitcoin in the battle of the safe-havens. Earlier this month, McGlone tweeted:

“Gold will always have a place in jewelry and coin collections, but most indicators point to an accelerating pace of Bitcoin replacing the metal as a store of value in investor portfolios.”

Even JPMorgan, an organization long critical of Bitcoin, has claimed that the digital currency will consume a portion of gold’s market share. “The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced,” JPMorgan strategists led by Nikolas Panigirtzoglou said in a December 2020 report. “If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.”

Bitcoin’s digital gold narrative continues to strengthen post-halving. The quadrennial deflationary event, which last occurred in May 2020, reduces the amount of new Bitcoin that enters circulation after each block is mined.

Bitcoin is outshining gold in the battle of the safe havens

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