Institutional investors ditch gold for Bitcoin, seeing it as a better hedge against inflation – Bitcoin Planet markets and prices

[ad_1]

Global investment bank JPMorgan says institutional investors are returning to bitcoin, seeing cryptocurrency as a better hedge than gold. Company analysts describe three key factors that have driven the price of bitcoin up in recent weeks, including assurances that U.S. policymakers will not ban cryptocurrencies.

JPMorgan sees renewed interest in Bitcoin

JPMorgan released a research note Thursday indicating that institutional investors are returning to bitcoin. Citing the trend of silver coming out of gold towards BTC, analysts at the company wrote:

Institutional investors appear to be returning to bitcoin, perhaps viewing it as a better hedge against inflation than gold.

Analysts explained that there are three key factors that push the price of bitcoin from around $ 40,000 to around $ 55,000 in a short period of time. The price of bitcoin is $ 53,853.14 at the time of writing, based on data from Bitcoin.com Markets.

The first is “recent assurances from US policymakers that there is no intention to follow China’s measures to ban the use or exploitation of cryptocurrencies.” Federal Reserve Chairman Jerome Powell and SEC Chairman Gary Gensler told Congress this week they have no plans to ban cryptocurrency like China has done. . The SEC chief said his agency is taking a different approach to China, focusing on investor protection and regulation.

The second reason is “The recent rise of the Lightning Network and second layer payment solutions aided by the adoption of bitcoin in El Salvador,” detailed JPMorgan. El Salvador made bitcoin legal tender in early September. The country bought 700 BTC and President Nayib Bukele claimed that 3 million Salvadorans were already using the government’s bitcoin wallet, Chivo.

The third reason is:

The resurgence of inflationary concerns among investors has renewed interest in using bitcoin as an inflation hedge.

JPMorgan further explained that the trend of funds exiting gold to bitcoin has resurfaced in recent weeks. In May, the company experienced the reverse trend where funds were moved from BTC to gold.

According to the firm, more than $ 10 billion has been withdrawn from gold exchange traded funds (ETFs) since the start of the year. During the same period, more than $ 20 billion has been paid into bitcoin funds.

Noting that these cash flows into bitcoin have helped bring BTC’s share of the total crypto market to nearly 45%, up from 41% in mid-September, analysts concluded:

Rising bitcoin’s share is a healthy development as it is more likely to reflect institutional involvement than smaller cryptocurrencies.

Meanwhile, JPMorgan CEO Jamie Dimon believes bitcoin has no intrinsic value and that regulators are going to “regulate hell.” Its investment bank, however, currently offers several crypto investments to its clients.

What do you think of JPMorgan’s analysis? Let us know in the comments section below.

Keywords in this story bitcoin fund, bitcoin price, gold bitcoin, gold ETF, inflation hedge, institutional investors, JP Morgan, jpmorgan, jpmorgan bitcoin, JPMorgan Chase, price increase

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

[ad_2]