Bitcoin ($BTC) value recorded a brand new all-time-high close to $67K yesterday, taking Bitcoin’s market cap to $1.25 trillion. The bullish value surge was largely attributed to the record-breaking ProShares Bitcoin Futures ETF ($BITO) debut. Nonetheless, JP Morgan strategists imagine in any other case. In accordance with a report by Bloomberg, JP Morgan strategists see rising inflation as the important thing catalyst behind $BTC’s value surge.
“By itself, the launch of BITO is unlikely to set off a brand new part of considerably extra contemporary capital getting into Bitcoin,” wrote strategists together with Nikolaos Panigirtzoglou, referring to the ProShares Bitcoin Technique ETF. “As a substitute, we imagine the notion of Bitcoin as a greater inflation hedge than gold is the principle motive for the present upswing, triggering a shift away from gold ETFs into Bitcoin funds since September.”
JP Morgan stated that traders are searching for a greater inflation hedge than gold and that’s why BTC’s demand has soared within the latest previous. The strategists additionally cited the instance of loads of ETF choices already out there available in the market earlier than the $BITO launch and in addition claimed the hype across the first Bitcoin Futures ETF would die down quickly.
JP Morgan claiming BTC is a greater inflation hedge than gold got here as a shock to many given the CEO Jamie Dimon’s recognized disliking for the highest cryptocurrency.
JP Morgan is just not the Solely Establishment that Sees BTC as Infaltion Hedge
The market sentiment round Bitcoin has change into extraordinarily bullish once more as the highest cryptocurrency set a brand new ATH. Peter Thiel, the co-founder of PayPal additionally lauded Bitcoin not too long ago in his interview the place he referred to as it the “hope” within the combat in opposition to tyranny. Thiel additionally stated he’s underinvested in Bitcoin whereas slamming central banks for his or her flawed insurance policies.
$BTC is presently buying and selling at $64,808 with 1.05% positive factors over the previous 24-hours. The highest cryptocurrency has seen a minor retrace from its yesterday’s ATH of $66,971.
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