20.05.202110:01 Forex Analysis & Reviews: JPMorgan: Institutions have started transferring money from bitcoin to gold

The fundamental background for bitcoin in the last month has been extremely poor. There were several messages from China, where there were accidents in coal mines, and there was a shortage of coal, which led to interruptions in the supply of electricity to some regions of the country, which provoked the suspension of the mining process on many farms and lowered the hash rate of the network by 20-40%. There were the constant and uncontrolled posts on Twitter by Elon Musk, who either praises Bitcoin or criticizes it, and the news that Tesla offered its customers the opportunity to pay for electric cars in bitcoins, then reversed its decision. Plus, there was the news from the US Department of Justice that an investigation has begun against the Binance crypto exchange. In addition to this was the so-called "altcoin season". Also in China, regulators have banned financial institutions from providing any services related to cryptocurrencies. These are just the main news of recent times, which clearly spoke not in favor of "digital gold". According to the latest information provided by the American investment bank JPMorgan, institutional investors have been transferring their capital from bitcoin to gold in the last month, although they have been doing the opposite for the last two quarters. The bank's experts analyzed the number of closed bitcoin futures over the past month and came to the conclusion that the outflow of large investors has begun from the bitcoin network. In principle, this is not surprising, since bitcoin has become cheaper in the last month, and yesterday it completely collapsed downward. Also, many analytical companies and independent experts reported that a record number of coins have arrived on cryptocurrency exchanges over the past few days. This means that many digital gold owners have been trying to get rid of their coins. Thus, so far, the conclusions for Bitcoin are not encouraging. If institutionalists seek to get rid of their investments in cryptocurrency, then it is unlikely that we will have to rely on them to save bitcoin from a new fall. Therefore, in the coming days, we need to wait for new information from market participants. It is unlikely that we will see these days forecasts that say bitcoin will reach $100,000 per coin until the end of the year. Most likely, the negative background will only intensify. Of course, the market itself is now waiting for new statements by Elon Musk, who can not only lower the rate by several thousand dollars, but also easily raise it. In any case, we are waiting for news.

Technically, bitcoin on the 4-hour timeframe fell to two important support levels, after which it began a corrective rise. But, as we can see, the cryptocurrency has not yet managed to gain a foothold above the critical line of Kijun-sen, which lies at the level of $39,755. If such a consolidation takes place, it will be possible to count on the growth of "digital gold" to the level of $43,852 or slightly higher.