According to a recent research note by JPMorgan, institutional investors have withdrawn about $20 billion from their gold investments since mid-October and during the same time frame, institutional inflows into Bitcoin (BTC) have increased by $7 billion.
The bank said, “any such crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term.”
JPMorgan believes that Bitcoin’s declining volatility could increase adoption from institutional investors. If that happens, the value of the private investments in Bitcoin may mirror that of gold and this gives Bitcoin an upside target of $130,000 in the long term, added the bank.
In other news, billionaire investor Mark Cuban said his crypto portfolio consists of 30% Ether (ETH) because he believes it is the closest thing to being a true currency. Cuban said the remainder of his crypto portfolio consists of 60% Bitcoin and 10% in other crypto investments.
CryptoQuant CEO Ki Young Ju recently highlighted that 400,000 Ether had left Coinbase, a sign that institutional investors may have started accumulating the top altcoin.
The increased adoption of cryptocurrencies by legacy financial institutions and investors is a positive sign but will this newsflow act as a tailwind and boost the price of the top-10 cryptocurrencies?
Let’s analyze the charts to find out.
Bitcoin formed a Doji candlestick pattern on March 31 and April 1, which suggests indecision among the bulls and the bears. However, the positive sign is that the bulls have not given up much ground. The bulls are again trying to push the price above the $60,000 resistance.
A strong breakout above the $60,000 to $61,825.84 overhead resistance zone will suggest that bulls are back in the driver’s seat. That could signal the start of the next leg of the uptrend, which has a target objective at $69,279 and then $79,566.