JPMorgan: Bitcoin futures are oversold, silver has turned to overbought, and the long-term target price for gold is $8,500

According to a report by The Block, JPMorgan analysts indicate that Bitcoin futures appear to be oversold, while gold and silver futures have entered the overbought territory, as investors are increasingly favoring precious metals over Bitcoin in both retail and institutional channels.

Despite the short-term risks facing precious metals, analysts remain optimistic about gold's long-term prospects. They state that the allocation ratio of gold is continuously rising among both private investors and central banks. Analysts reiterate that if households continue to replace long-term bonds with gold as a hedge against stocks, the allocation ratio of private investors to gold could rise from the current slightly above 3% to about 4.6% in the coming years. In this scenario, analysts believe that the theoretical price range for gold could reach between $8,000 and $8,500 per ounce.