JPMorgan sees ‘bullish outlook’ for bitcoin as inflation concerns push up BTC prices – Economy Bitcoin News

Global investment bank JPMorgan says inflation concerns are pushing bitcoin prices to record highs, rather than interest in the recently launched Bitcoin Future Exchange-Traded Funds (ETFs). Noting that investors are coming out of gold ETFs in Bitcoin funds, the firm noted, “The flow change remains intact, supporting a bullish outlook for Bitcoin by the end of the year.”

JPMorgan sees inflation as the price of bitcoin rises

Analysts at JPMorgan Chase, led by Nikolaos Panigirtzoglou, released a research note last week explaining that inflation is pushing bitcoin prices to an all-time high rather than the first US Bitcoin Future Exchange-Traded Fund (ETF) campaign.

Proshares Bitcoin strategy ETF, Ticker BITO, started trading on Tuesday and quickly invested 1 billion. The second Bitcoin Futures ETF in the United States launched on Friday.

JPMorgan analysts believe that “in itself, the introduction of BITO is unlikely to usher in a new phase of significant new capital inflows into Bitcoin,” in detail:

Instead, we believe the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current rise, which is the reason why gold has moved away from ETFs in Bitcoin funds since September.

Analysts added that “the initial hype with Bito could fade after a week.”

Bitcoin hit an all-time high of, 66,899, according to data from Markets on Tuesday. At the time of writing, BTC is priced at around $ 61,249. It has grown by about 40% since the beginning of the month and by more than 90% since the beginning of the year. The price of BTC rose significantly in anticipation of the market for the approval of Bitcoin Future ETFs by the US Securities and Exchange Commission (SEC).

JPMorgan analysts not only explained that the real driver behind the rise in bitcoin prices was concerns about inflation, but they also noted that it pushed investors to invest which could act as a hedge against these risks, such as gold and bitcoin.

Gold was an effective tool to hedge against inflation. However, it has failed to respond to higher concerns over rising spending pressures in recent weeks. This led investors to explore alternative investments, and many switched from Gold ETFs to Bitcoin funds, analysts noted, adding:

This flow shift remains intact, supporting a bullish outlook for Bitcoin until the end of the year.

Analysts at JPMorgan don’t just see Bitcoin as a better hedge against inflation than gold. Recently, billionaire fund manager Paul Tudor Jones also said that Bitcoin has won the race against gold and that he prefers cryptocurrency over gold as an inflation hedge.

What do you think about JPMorgan’s Bitcoin View? Let us know in the comments section below.

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