Story Highlights
- Bitcoin has outpaced gold in investor portfolio allocation.
- This milestone underscores the success of Bitcoin ETFs.
- However, the BTC price crashed significantly.
JPMorgan analysts have noted that allocation of Bitcoin (BTC) in investor portfolios has surpassed that of gold when adjusted for volatility. Specifically, Bitcoin’s allocation is 3.7 times greater than that of gold. Moreover, they pointed out a net inflow of $9 billion into Bitcoin ETFs since their inception, which offsets outflows from Grayscale.
Bitcoin Achieves Milestone Against Gold
JPMorgan’s declaration suggests a potential Bitcoin ETF market size of $62 billion if gold is used as a benchmark. Furthermore, February marked a notably optimistic period for the cryptocurrency market, with the total market capitalization soaring by nearly 40% month-over-month to $2.2 trillion. This surge was primarily driven by a 45% increase in Bitcoin and a 47% rise in Ethereum.
While altcoins didn’t perform as strongly, they still recorded double-digit gains. In addition, the decentralized finance (DeFi) and non-fungible token (NFT) sectors also saw gains during this rally. Moreover, the net sales for Spot Bitcoin ETFs surged to $6.1 billion in February, up from $1.5 billion in January.
Additionally, the crypto market Bitcoin’s value surged by 31% in a month, reaching a new all-time high at over $73,800. This rise coincided with significant inflows into Spot Bitcoin ETFs. Similarly, crypto mining stocks also reached new record highs in February.
Also Read: JPMorgan Sounds Alarm Over MicroStrategy’s $20B Bitcoin Buying Spree
Recommended Articles
BTC Price Crashes
However, after attaining the peak, the Bitcoin price experienced a substantial drop today. As of press time, BTC plummeted by 5.86% to $68,105.40 on Friday, March 15, while maintaining a market valuation of $1.33 trillion. Interestingly, the 24-hour trade volume for BTC surged by 91.58% to $85.95 billion.
The recent downturn in Bitcoin’s price is being attributed to a spike in inflation rates, notably reflected in the US Producer Price Index (PPI). In February, the PPI, which encompasses raw material costs influencing selling prices, rose by 0.6%, surpassing the expected 0.3% increase. The unexpected surge in inflation is likely to draw close attention from the Federal Reserve during their March meeting.
Moreover, a notable liquidation event is cited as another contributing factor to the decline in BTC’s price. According to CoinglassCoinglass data, a total of $270.69 million was liquidated, with $207.44 million originating from long positions within the past 24 hours. This significant liquidation adds to the downward pressure on Bitcoin’s value.
Also Read: Just-In: MicroStrategy Rushes to Buy More BTC With $525M
- Cardano Whales Dominate As ADA Surpasses Dogecoin & Litecoin Volume
- Solana Meme Coin WIF Regains Momentum On Major Listing Announcement
- Bitcoin and Ethereum Lead Three Weeks of Crypto Investment Outflows, What’s Next?
- Peter Brandt Hints BTC Has Peaked, Predicts 35k Price Range Decline
- Circle’s USDC Overtakes Tether USDT In Transaction Volume: Visa
- Crypto Price Prediction 29/4: Will $BTC Correction Plunge Below $60k in May?
- Top 5 Hottest Coins To Buy Before May For 100X Potential
- Can Ethereum Crack $4,000? On-Chain Activity and Price Pattern Suggest So
- Pepe Coin Escape From Channel Pattern Hints A Price Rally to $0.00001
- Solana Price Forecast: Is a Breakout Above $200 Imminent?