Deutsche Bank’s strategist Jim Reid reportedly wrote that investors are increasingly demanding to use bitcoin instead of gold to hedge dollar risk and inflation. His research concurs with one recently published by JPMorgan’s analysts that shows institutional investors moving from gold to bitcoin.
Investors Replacing Gold With Bitcoin
In a report discussing the performances of several investments post-vaccine news, Deutsche Bank’s research strategist Jim Reid wrote that “One of the oddities has been the dramatic divergence between gold (-3.6%) and silver (-4.4%) on the one hand and bitcoin (+13.4%) on the other,” according to Zerohedge publication. Reid elaborated:
There also seems to be an increasing demand to use bitcoin where gold used to be used to hedge dollar risk, inflation and other things.
Reid noted that “Bitcoin is up another +3% overnight and seems to be creating momentum of its own. It’s up over 70% over the last six weeks as more and more investors are starting to see