Here is the reason why Bitcoin has risen by 35 % within days according to JP Morgan
Here is the reason why Bitcoin has risen by 35 % within days according to JP Morgan
The institutes have resumed their appetite for Bitcoin instead of gold, strategists of the huge Wall Street bank JPmorgan Chase & Co. As a result, they attributed the recent price increase to new multi-month highest.
advise who is back?
The demand for Bitcoin from institutions is a relatively new concept in the cryptocurrency area. It was at best negligent by 2020, but the Covid 19 pandemic and the subsequent extreme measures of the world regulations changed the sheet.
Bitcoin has developed from “magical internet money” to an investment instrument that could serve as a protection against growing inflation. Prominent investors and institutions began to rush at the end of 2020 and early 2021, which shot the BTC price up to $ 65,000.
Shortly afterwards the reports arising claims that the institutions have stopped pushing large parts of the cryptocurrency; some even in only a few months remarkable profits and left the market.
This also coincided with the price cooling of BTC, which, in combination with the latest Chinese fud, led to a correction of 65 % within two months.
According to JPMorgan newestem Update In this context, however, institutions in the Bitcoin landscape have reappeared. In addition, they claimed that such investors could continue to buy because they see Bitcoin as the better alternative to gold.
"Institutional investors seem to return to Bitcoin, maybe they see it as better protection against inflation than gold."
Since BTC is currently increasing to around $ 55,000, this means that cryptocurrency has increased by 85% since the beginning of the year. In the same period, gold - historically as the most frequently chosen instrument of safe ports - fell by 7 %.
other possible reasons?
The analysts of JPMorgan also addressed some other possible reasons for the recent increase in BTC. Similar to cryptopotato’s Article Words of US officials-FED boss Jerome Powell and SEC boss Gary Gensler-who assured both persons that the country has no intention to prohibit digital assets, they said that it could be a positive reaction.
Apart from the "resuming of inflation concerns" and the "use of Bitcoin as inflation protection", the strategists also added that the growth of Lightning Network might have played a role.
The Layer 2 payment solution has recently received a significant acceptance, since used from El Salvador and Twitter. Many see this the necessary improvement in the Bitcoin network, which could accelerate smaller transactions and help to avoid traffic jams.
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