In 2020, China has repeatedly been pointing out the bull run the largest digital asset is enjoying, and yet again, before the year is over, it went at it again, but this time, it took one step further.
Over the weekend, CCTV, China’s state media’s Bitcoin coverage, involved its bull market, causing downward pressure on the precious metal.
— Red Li (@redtheminer) December 13, 2020
Bitcoin getting airtime on the state media is significant in itself, but it is more so when compared with the traditional safe-haven asset, which has high demand in the country.
Interestingly, when it comes to global gold demand that includes jewelry, technology, bars, coins, and ETF, China, along with India, accounts for the highest, 24% each.
“It’s truly incredible if you think about it. A decade ago, we started printing a digital ledger, which today is still less than 1 terabyte that’s sucking the life out of an element on the fucking periodic table that has existed since the dawn of universe…” noted analyst Qiao Wang.
The CCTV report quoted JPMorgan’s report predicting a major shift in crypto and gold markets as digital assets become increasingly popular as an investment asset class.
“The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced,” wrote JPMorgan strategists earlier this month while noting that money poured into the Bitcoin fund since October year while moving out of gold.
According to the strategists, the trend that started this year is only going to continue in the long run as more institutional investors jump on the Bitcoin bandwagon.
“If this medium to longer-term thesis proves right, the price of gold would suffer from a structural flow headwind over the coming years,” wrote JPMorgan’s strategists at the time.
In its latest report, the banking giant said Bitcoin adoption by institutional investors achieved another milestone with MassMutual’s $100 million BTC purchase that could see an additional $600 billion in Bitcoin demand.
Back in Sept., CCTV also reported that cryptocurrency is the best-performing asset of the year has surpassed other investment classes like gold and US stocks.