JPMorgan sees upward view for Bitcoin, as inflation worries drive up the BTC price-economy
JPMorgan sees upward view for Bitcoin, as inflation worries drive up the BTC price-economy
The global investment bank JPMorgan says that inflation worries are driving the price of Bitcoin at record heights instead of interest in recently placed Bitcoin Futures Exchange Trades (ETFs). The company found that investors get out of gold ETFs into Bitcoin funds, and found: "The river shift remains intact and supports an optimistic view for Bitcoin by the end of the year."
jpmorgan sees that inflation drives the price of Bitcoin up
The analysts of JPMorgan Chase under the direction of Nikolaos Panigirtzoglou published a research note that inflation has driven the Bitcoin price at an all-time high and not the hype at the first US bitcoin futures Exchange Traded Fund (ETF).
Proshares Bitcoin Strategy Etf, Ticker Bito, began to act Tuesday and quickly collected a billion dollars of investments. The second Bitcoin-Futures-ETF in the USA Started Friday.
The analysts of JPMorgan believe that "the introduction of Bito alone will probably not trigger a new phase with significantly more fresh capital in Bitcoin" and lead out:
Instead, we believe that the perception of Bitcoin as a better inflation protection as a gold is the main reason for the current upswing that has been released from gold ETFs to Bitcoin funds since September.
"The initial hype about Bito could leave after a week," said the analysts.
The price of Bitcoin skyrocketed to an all -time high of 66,899 USD, based on data from Bitcoin.com Markets on Tuesday. At the time of writing, btc The price is around 61,249 US dollar. It has increased by around 40 % since the beginning of the month and has increased by more than 90 % since the beginning of the year. The price of btc increased significantly when the market was admitted to the registration of a Bitcoin-Futures-ETF by the US exchange supervisory authority expected.
The analysts of JPMorgan not only explain that the true driver behind Bitcoin's price increase was the growing inflation, but they also found that this caused investments to look for investments that can serve as protection against this risk, such as gold and Bitcoin.
In the past, gold was an effective instrument for protection against inflation. In the past few weeks, however, it has not been possible to respond to the increased concerns about increasing cost pressure. This prompted investors to explore alternative systems, and many of them had passed from gold ETFs to Bitcoin funds, the analysts found and added:
This river shift remains intact and supports a bullish outlook for Bitcoin by the end of the year.
The analysts of JPMorgan are not the only ones who see Bitcoin as better inflation protection than gold. Recently billions of funds Paul tudor jones also said that also said that Bitcoin won the race against gold and he prefers the cryptocurrency gold as inflation protection.
What do you think of the Bitcoin view of JPMorgan? Let us know in the comment area below.
Bedy verification : Shutterstock, Pixabay, Wiki Commons
Kommentare (0)