China state media flag weaker outlook for gold as Bitcoin hits new records

Chinese state television CCTV touched on the topic of capital outflows from gold ETFs in light of news about the development of COVID-19 vaccines. The segment cited JPMorgan’s report on a shift in institutional investors’ preferences toward Bitcoin.

CCTV’s latest coverage on #BTC https://t.co/KqbBo4bdrx pic.twitter.com/Puw3sC6sGl

— Red Li (@redtheminer) December 13, 2020

In the CCTV study mentioned, JPMorgan is presented with a chart in which the Grayscale Bitcoin Trust outpaces gold-backed ETFs. It also notes that the first cryptocurrency could be viewed as an alternative to a precious metal.

Цяо Ван from DeFi Alliance called the fact of Chinese media coverage of this topic incredible and urged readers to ponder the news itself.

“Bitcoin, created a decade ago, is reclaiming its position from a periodic element of the periodic table known since the dawn of the universe,” he wrote.

In the week from 30 November to 7 December, inflows into crypto-related investment products amounted to $429 million, bringing their total to around $15 billion, according to CoinShares. Over four weeks, outflows from gold-focused funds amounted to $9.2 billion, with 15% of that money ($1.4 billion) directed into Bitcoin purchases.

Earlier in December, Chinese media characterized Bitcoin’s new records as “hype.” In 2017, Chinese authorities imposed bans on Bitcoin exchanges and ICOs.

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