JPMorgan: BTC breaking $55,000 is fueled by institutional investors appetite for Bitcoin

The flagship digital asset, Bitcoin, in the last seven days has witnessed one of its best times in recent weeks with its value touching as high as $55,000 during the bull run.

While many analysts are yet to place a finger on what triggered this run, a research note from a leading traditional bank, JPMorgan, has revealed that institutional investors are returning to the asset.

JPMorgan lists why Bitcoin is green

According to JPMorgan, the influx of this new wave of institutional investors in BTC is an attempt to hedge against inflation. The bank continued that while investors might have chosen gold in the past, their perception nowadays is that Bitcoin is a better inflation hedge.

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

JPMorgan continued that in this year alone, over $10 billion has been withdrawn from gold ETFs whereas Bitcoin funds have seen an inflow of over $20 billion within the same period. 

This level of inflow has had a positive impact on the market share of BTC amongst other crypto assets. “The increase in the share of bitcoin is a healthy development as it is more likely to reflect institutional participation than smaller cryptocurrencies.”

Another reason the bank gave for the green run was the assurances US authorities had given the crypto community about its intention not to ban the industry. There were heightened fears within the crypto world that the United States could also tow the China path by banning crypto transactions too.

However, the chairman of the Securities and Exchange Commission, Gary Gensler, in a recent interview declared that the country was not going to ban cryptocurrencies.

Lastly, the bank opined that the Bitcoin bull run was also pushed by “the recent rise of the Lightning Network and 2nd layer payments solutions helped by El Salvador’s bitcoin adoption.”

You’ll recall that we reported how the Lightning Network has seen massive usage and how El Salvador’s government has been incentivizing the use of Bitcoin in the country.

The post JPMorgan: BTC breaking $55,000 is fueled by institutional investors appetite for Bitcoin appeared first on CryptoSlate.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin Price Prediction – Why did Bitcoin Price Crash?

The cryptocurrency market recently saw a huge spike in prices. Bitcoin, the leading cryptocurrency by market cap saw a rise of more than 10% in the past 7 days. Today on the other hand was a red day. The cryptocurrency market on an aggregate level lost around 4%. Most investors are already dreading their sudden

This Is Why Bitcoin Flash Crashed By 87% To $8,000 On Binance.US

Earlier today, the bitcoin price temporarily dove from $65,820 to a meager $8K on Binance.US, losing some mind-boggling 87% in value before making up those losses in the span of a single minute. Bitcoin Flash Crashes To $8K On Binance.US Bitcoin endured a violent correction on Thursday, but only for Binance’s exclusive United States cryptocurrency

Rich Dad Poor Dad Author Robert Kiyosaki Tells Why He Loves Bitcoin

Renowned Rich Dad Poor Dad author Kiyosaki loves bitcoin over fiat. Kiyosaki advocates for Bitcoin as a superior store of value to the dollar. Staggering debt will soon disqualify the dollar as a store of value. Robert Kiyosaki, the author of the famous book ‘Rich Dad Poor Dad’ says that he loves Bitcoin and distrusts