According to a report released by JPMorgan Chase & Co. on Thursday, an indicator shows that bitcoin is already more popular than gold in investors' portfolios, thanks to its price constantly hitting new highs. As a mainstream cryptocurrency, Bitcoin has long been compared to gold, with some believing it to be a digital version of gold. On the face of it, gold should make up a higher percentage of the portfolio than Bitcoin, as an estimated $3.3 trillion is spent on gold investments.

JPMorgan Chase & Co. said that when comparing the two assets in terms of notional amount, Bitcoin's allocation appears to be lower, as Bitcoin has a market capitalization of only $1.3 trillion. Therefore, in theory, the value of bitcoin could still rise by 153% to reach the value level of gold. However, this calculation ignores an important factor, namely risk, and since bitcoin is about 3.7 times more volatile than gold, analysts say it is unrealistic to expect bitcoin to match gold in a nominal amount in investors' portfolios.
In other words, if a cryptocurrency is really seen as a digital analogue of gold, investors take into account its volatility and give it a smaller weight in their portfolios. But if that's the case, according to the report, the total value of Bitcoin will not exceed $900 billion, and its price should hover around $45,000 instead of the current close to $67,000. As a result, the report says that bitcoin has taken a larger place in investors' portfolios than gold from a volatility adjustment perspective.