Big institutional investors are dumping bitcoin and going back into gold, JPMorgan says

A visual representation of the digital cryptocurrency, Bitcoin, is on display in front of the Bitcoin course's graph in Paris, February 9, 2021.
Chesnot | Getty Images

Institutional investors are dumping bitcoin in favor of gold, reversing a recent trend that's played out over the last two quarters, according to a new report from JPMorgan.

Based on open interest in CME bitcoin futures contracts, the firm said large investors are shifting away from bitcoin after favoring the digital currency over gold beginning last fall.

"The bitcoin flow picture continues to deteriorate and is pointing to continued retrenchment by institutional investors," JPMorgan wrote in a note to clients. "Over the past month, bitcoin futures markets experienced their steepest and more sustained liquidation since the bitcoin ascent started last October."