JPMorgan analysts note that bitcoin may outperform gold due to sustained interest from institutional investors in the cryptocurrency. The token's price growth is being supported by increasing corporate capital allocations to bitcoin and the adoption of laws permitting governments to invest in this asset. This development is expected to create greater growth potential for the token compared to the precious metal in the second half of the current year.
JPMorgan also pointed to several recent deals as evidence of active development in the cryptocurrency derivatives market. These include Kraken's acquisition of the American platform NinjaTrader and Gemini obtaining a license to offer derivatives in Europe, which indicate that as this financial instrument comes under the influence of US and EU regulators, it may gain trust among institutional investors.
Over the past year, both gold and bitcoin have shown steady growth. Market participants were concerned about accelerating inflation and global macroeconomic instability. However, the cryptocurrency has outperformed the metal throughout this entire period, JPMorgan notes.