Bitcoin (BTC) surge is due to inflation, according to JPMorgan

Bitcoin Rises Along With Inflation

As Bloomberg reports, the firm JPMorgan has expressed its opinion on Bitcoin’s recent record high, and the effects of inflation on investment. She considers that the launch of the first Bitcoin ETF, which was a confirmed success, is not the main reason for the investor enthusiasm. Rather, it is the fears related to inflation that predominate:

β€œOn its own, it is unlikely that the launch of [l’ETF Bitcoin] does not trigger a new phase of capital inflow on Bitcoin. Rather, we believe that the main reason for this current rally is the perception of Bitcoin as a better hedge against inflation than gold. “

JPMorgan also notes that we are witnessing a change in trend among institutional investors, who have abandoned gold ETFs in favor of funds linked to Bitcoin since last September. What’s more, the trend seems sustainable, again according to analysts:

β€œThis change in flow remains intact, which supports a ‘bullish’ outlook for Bitcoin as it relates to the end of the year. “

πŸ‘‰ To read – JPMorgan launches a Bitcoin (BTC) fund for its high net worth clients

Bitcoin: the gold of 2021?

This positioning was shared by several large investors. Recently, billionaire Paul Tudor Jones confirmed that he considers Bitcoin to be a better hedge against inflation than gold. He explained thus:

” [Le BTC] has my preference over gold at the moment. […] There is clearly a space for crypto. She is clearly winning the race against gold right now. “

It must be said that Bitcoin’s performance in 2021 was particularly impressive. Starting from $ 28,000 at the beginning of January, the price of BTC hit $ 64,000 for the first time in mid-April. He then repeated the feat this week, exceeding for the first time in its history $ 66,000.

Bitcoin BTC price

Evolution of the Bitcoin price since the start of 2021. Source – TradingView, BTC / USDT

Institutional investors now seem determined to turn to the queen of cryptocurrencies. We recently learned that 90% of them would like to invest in cryptos by 2026, according to a survey.

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About the author: Marine Debelloir

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Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.

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