Bitcoin hasn’t behaved properly over the last years, says a team of strategists at JPMorgan Chase. Citing this reason, the team opines that Bitcoin is, in fact, more of a risk asset as opposed to the popular belief that it’s a totally safe bet for investors.
The strategists note that Bitcoin’s price has greatly correlated with the dynamics of the S&P500 market since March 2020. By noting this, the strategists probably hoped to evoke the notion that the crypto could be just as vulnerable as other investment options.
Bitcoin And Gold In The Same Boat
Going on, the strategist noted that besides Bitcoin, Gold has also been subject to correlation with regard to the S&P500, making both BTC and Gold risk assets. It is to be remembered that the larger financial and investor community sees the two assets as the best safe havens for stole of value.
Over the years, Bitcoin has inched closer to clinching the ultimate number one spot as the de facto choice for a store of value asset. Many analysts hold that crypto will soon start edging out Gold from the top position. However, this will take some time. Now, the fact that the two most favored assets are in the same basket of “risk assets” elicits some points of concern, but the crypto industry has grown hardened to these notions.
Return To $40k Looks Difficult
According to the strategists at JPMorgan, it would be a tough trial for Bitcoin to reclaim its $40k glory, at least for the short-term. That’s not to say that the crypto won’t continue to break records in the future. In fact, the same strategists made a rather optimistic forecast a while back.
They stated Bitcoin will one day hit the highs of $146k. In this case, BTC is expected to have conquered the current bad times and positioned itself to more glory in the long-term. That could be one reason that the crypto community needs to stay positive on BTC during the prevailing uncertain times.