Institutions buying Bitcoin rather than gold as inflation cranks up: JPMorgan

Institutions buying Bitcoin rather than gold as inflation cranks up: JPMorgan

According to JPMorgan this week’s rally has been driven by institutional investors hedging against inflation with Bitcoin. Bitcoin (BTC) has led a 35% rally this week by soaring far above the $50,000 resistance level and restoring a $1 trillion market capitalization to the asset. According to a note shared by JPMorgan with clients on Thursday, the recent increase in price for BTC was predominantly attributed to institutional investors looking for a hedge to inflation. "The re-emergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation....


Related News

JPMorgan: Bitcoin is 'overbought' but will suck money out of gold

Institutions need to keep buying to avoid a price drop, JPMorgan analysts say, but the outlook is rosy and will come at the expense of gold. Institutional investors may be all that’s pushing up the price of Bitcoin (BTC), a new report from JPMorgan Chase claims.In comments on Dec. 18 quoted by Bloomberg, strategists led by Nikolaos Panigirtzoglou added to recent forecasts about the role of institutions in Bitcoin’s future.JPMorgan: Bitcoin "overbought"According to JPMorgan, the largescale inflows seen this month must continue to avoid a price correction. As Cointelegraph reported, theories....

JPMorgan: Institutional Investors Dump Gold for Bitcoin Seeing It as Better I...

Global investment bank JPMorgan says institutional investors are returning to bitcoin, seeing the cryptocurrency as a better hedge than gold. The firm’s analysts describe three key drivers boosting the price of bitcoin in recent weeks, including assurances that U.S. policymakers will not ban cryptocurrencies. JPMorgan Sees Renewed Interest in Bitcoin JPMorgan published a research note Thursday stating that institutional investors are returning to bitcoin. Citing the trend of money flowing out of gold into BTC, the firm’s analysts wrote: Institutional investors....

JPMorgan Sees ‘Bullish Outlook’ for Bitcoin as Inflation Concerns Push BTC Pr...

Global investment bank JPMorgan says inflation concerns are pushing the price of bitcoin to record highs, rather than interest in recently launched bitcoin futures exchange-traded funds (ETFs). Noting that investors are pulling out of gold ETFs into bitcoin funds, the firm noted, “The flow shift remains intact supporting a bullish outlook for bitcoin into year-end.” JPMorgan Sees Inflation Driving up the Price of Bitcoin JPMorgan Chase’s analysts, led by Nikolaos Panigirtzoglou, published a research note last week explaining that inflation has been driving....

Deutsche Bank: Investors Increasingly Choose Bitcoin Over Gold to Hedge Dolla...

Deutsche Bank’s strategist Jim Reid reportedly wrote that investors are increasingly demanding to use bitcoin instead of gold to hedge dollar risk and inflation. His research concurs with one recently published by JPMorgan’s analysts that shows institutional investors moving from gold to bitcoin. Investors Replacing Gold With Bitcoin In a report discussing the performances of several investments post-vaccine news, Deutsche Bank’s research strategist Jim Reid wrote that “One of the oddities has been the dramatic divergence between gold (-3.6%) and silver (-4.4%) on....

JPMorgan says inflation concerns, not ETFs, driving Bitcoin price jump

JPMorgan strategists say that interest in the newly launching BITO Bitcoin ETF could cool after a week or so. Bitcoin (BTC) broke its all-time high price level following the launch of ProShares’ Bitcoin Strategy exchange-traded fund (BITO) on Tuesday, but JPMorgan Chase strategists believe the key driver behind the price jump is investor concern over inflation.The BITO launch, which saw the highest ever first-day natural volume for an ETF, is “unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin,” JPMorgan strategists said in a note. Instead, JPMorgan....