Institutional investors emit gold for Bitcoin and see it as better inflation protection - markets and prices

Institutional investors emit gold for Bitcoin and see it as better inflation protection - markets and prices

The global investment bank JPmorgan says that institutional investors return to Bitcoin and see cryptocurrency as better protection than gold. The company's analysts describe three main drivers who have raised the Bitcoin price in the past few weeks, including the assurances that US politicians will not prohibit cryptocurrencies.

jpmorgan sees again interest in Bitcoin

jpmorgan released a research note on Thursday statement that institutional investors return to Bitcoin. Reference to the trend of the money flow made of gold in btc , wrote the analysts of the company:

Institutional investors seem to return to Bitcoin, maybe they see it as better protection against inflation than gold.

The analysts said that there are three main drivers that drive the Bitcoin price from around $ 40,000 to around $ 55,000 in a short time. The price of Bitcoin is $ 53,853,14, based on data from bitcoin.com-markets .

The first is "the recent assurances of the US politicians that it is not intended to follow China's steps to ban use or breakdown of cryptocurrencies". Both the chairman of the Federal Reserve gary Gensler informed the congress this week that they would not be intended to bend cryptocurrencies, as it China did. The SEC boss said that his agency was following a different approach to China and focuses on investor protection and regulation.

The second reason is "the recent rise of the Lightning Network and the 2nd shift payment solutions, which were supported by the Bitcoin introduction in El Salvador," explained JPMORG. El Salvador made Bitcoin a legal means of payment in early September. The country has bought btc and president Nayib Bukele claims that 3 million Salvadorians are already using the Bitcoin wallet of the government, Chivo.

The third reason is:

The reappearance of inflation concerns among investors has renewed interest in the use of Bitcoin as inflation protection.

jpmorgan continued that the trend that Gold money flowed into Bitcoin has reappeared in the past few weeks. In May the company recorded the opposite trend in which btc into gold.

According to the company, more than $ 10 billion from gold Exchange Traded Funds (ETFs) has been run since the beginning of the year. In the same period, more than $ 20 billion flowed into Bitcoin funds.

Note that these money flows in Bitcoin have contributed to promoting the development btc From a low of 41% in mid -September, the analysts concluded:

The increase in Bitcoin is a healthy development, since it rather reflects institutional participation than minor cryptocurrencies.

In the meantime, JPMorgan-CEO Jamie Dimon believes that Bitcoin has no inner value and the supervisory authorities "regulate hell". His investment bank, on the other hand, is currently offer several crypto investments to customers.

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