JPMorgan: “Investor interest shifting from Bitcoin (BTC) to precious metals… BTC futures in oversold territory”

JPMorgan said retail and institutional investors’ preferences are shifting from Bitcoin (BTC) to precious metals such as gold and silver, and assessed that the Bitcoin futures market has entered an oversold phase.

According to The Block, a digital-asset (cryptocurrency) news outlet, JPMorgan said in a recent report that “retail investors actively participated in the so-called ‘debasement trade’ last year, buying both Bitcoin and gold exchange-traded funds (ETFs), but a change in this trend emerged around August last year.”

The report noted that “while cumulative inflows into spot Bitcoin ETFs stalled or declined in the fourth quarter of last year, inflows into gold ETFs surged over the same period,” adding that “this suggests retail investors are reallocating from Bitcoin to precious metals such as gold and silver.”

It continued, “For institutional investors, this shift in asset preference is even more pronounced than for retail investors,” adding that “against this backdrop, Bitcoin futures positioning is nearing oversold levels.”