Bitcoin’s (BTC) parabolic surge in 2020 will not hurt major traditional assets like gold, according to Goldman Sachs.

One of the world’s biggest investment banks, Goldman Sachs reportedly sent a note to investors, reassuring its clients that Bitcoin does not pose an existential threat to gold, Bloomberg reports Dec. 18. “We do not see evidence that Bitcoin’s rally is cannibalizing gold’s bull market and believe the two can coexist,” the company wrote.

Goldman Sachs still admitted that Bitcoin’s ongoing rally could steal some demand from gold investors, stating:

“Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that Bitcoin is replacing gold as the inflation hedge of choice. […] While there is some substitution occurring, we do not see Bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort.”

Amid Bitcoin breaking its new all-time highs in December, global investors are increasingly moving into Bitcoin. Christopher Wood, global head of equity strategy at independent investment bank Jeffries Financial, has reportedly cut his gold exposure to buy more Bitcoin. 

According to a Dec. 18 report by Indian news agency Business Standard, the renowned market analyst is trimming his gold investment for the first time in several years. Wood wrote in a note to investors that his BTC allocations account for 5% of his portfolio:

“The 50 per cent weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in Bitcoin. If there is a big drawdown in bitcoin from the current level, after the historic breakout above the $20,000 level, the intention will be to add to this position.”

According to the report, Wood plans to further increase exposure to crypto in case of corrections. Still, the analyst took a similar stance to Goldman Sachs by remaining bullish on gold as well. “This does not mean that GREED & fear is going to give up on gold. And the yellow metal should rally again if the Fed stays dovish in the face of the dramatic cyclical recovery that is coming on the other side of the pandemic, in line with GREED & fear’s base case,” Wood said.

On Dec. 17, Bitcoin posted another historic all-time high, rising above $23,000. At the time of publication, Bitcoin is trading at $23,133, according to Cointelegraph’s BTC price index. In contrast, gold prices dropped on Thursday, with both spot hold and futures tumbling 0.3%. Gold lost about 10% from its all-time high in August of $2,076.