JPMorgan, the top bank claims that institutional investors are taking their money out of gold and into bitcoin. Recently, Bitcoin hits past a $1 trillion market capitalization yesterday as the price surges above $55,000.
U.S. big bank JPMorgan says institutional investor appetite, assurances that the U.S. won’t ban BTC, and the recent rise of the Lightning Network are all apart of what’s influencing the market.
“The re-emergence of inflation concerns among investors has…”
“…renewed interest in the usage of bitcoin as an inflation hedge,”
“Institutional investors appear to be returning to bitcoin perhaps…”
“…seeing it as a better inflation hedge than gold.”
Additionally, JPMorgan notes that the trend where investors are pulling out their money from Gold into Bitcoin is still very much active. The reports reveal, there’s more reassurance of bitcoin as a store of value among Investors. This is contributing to the massive inflow of money into BTC lately.
Furthermore, JPMorgan goes on to share two other factors influencing the bitcoin price. Which of course, is different from just institutional players favoring BTC over gold for the store of value.
Conclusively, U.S. Federal Reserve chair Jerome Powell’s recent comments also comes in handy as an encouragement for the BTC price spike. Notably, Powell says the US has no plans to place any ban on crypto, just as China did.
“The recent rise of the Lightning Network and 2nd layer payments solutions…”
“…helped by El Salvador’s bitcoin adoption”
also is helping boost confidence among investors on the asset class. As JPMorgan concludes.