JPMorgan talking to its clients on Thursday, revealed that the recent Bitcoin price surge is primarily the result of institutional investors’ money flow. As inflation is rising, investors are shifting to BTC rather than gold.
BTC has been really bullish this week, rising from $42,000 to finally $55,000, leading to the restoration of the king coin’s $1 trillion market capitalization.
The company analysts said that the return of inflation concerns among big investors has increased their interest in BTC because of its basic property to fight against inflation. They further added that there has been a major perception and action shift among the investors.
Not only institutions, Kevin O’Leary, the Shark Tank celebrity, has made a statement earlier this week saying that crypto now has a larger portion in his portfolio than gold.
JPMorgan has always changed sides. When the market was down in May, the company made various statements saying that BTC would go down to $20,000 easily. It also said that big investors are going out of BTC to traditional gold.
JPMorgan on factors behind BTC’s upward rally
JPMorgan added there are two more major factors that resulted in this bullish attitude of BTC.
“The recent assurances by US policymakers that there is no intention to follow China’s steps towards banning the usage or mining of cryptocurrencies,” the analysts noted, as well as:
“The recent rise of the Lightning Network and 2nd layer payments solutions helped by El Salvador’s Bitcoin adoption.”
Despite the company showing interest in the crypto industry and hyping up the BTC, one cannot ignore the statements of CEO Jamie Dimon on October 22, 2020. He had expressed his skeptical views on BTC and even called it “a little bit of fool’s gold.”
BTC in the last almost touched the $56,000 market, and according to the market speculators, $100,000 is not far. It has been continuously on an upward rally for the last eight days, and as experts are saying, October can prove itself as “Uptober.”