This article is added for educational purpose only. All credit goes to the respected author of this article. All In One Crypto App do not hold any liabilities of this article. You can get the source link at the end of the article content.
A team of strategists at the big bank said inflation concerns rather than the bitcoin-linked ETF are driving BTC prices higher.
Inflation concerns are driving Bitcoin’s record run, JPMorgan strategists said.
Gold is failing to perform as an inflation hedge, prompting investors to rotate into BTC.
“We believe the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing,” the strategists said.
Concerns that inflation will keep rising and not be transitory is the main driver for the Bitcoin price pushing to new highs — not the first U.S. bitcoin futures exchange-traded fund (ETF) — JPMorgan strategists said, according to a Bloomberg report.
“By itself, the launch of BITO is unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin,” wrote strategists, per the report, referring to the ProShares Bitcoin Strategy ETF. “Instead, we believe the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs into Bitcoin funds since September.”
As inflation rates have not declined despite the Federal Reserve’s multiple remarks that it will be “transitory,” investors have sought investment vehicles to protect their purchasing power. Gold has failed to act as such in recent months, contrary to Bitcoin, which has seen significant USD gains.
Institutional and professional investors are rebalancing their portfolios, cutting out losers, and hopping on the fastest horse. As a result, “the shift away from gold ETFs into Bitcoin funds has gathered pace,” per the report.
“This flow shift remains intact supporting a bullish outlook for Bitcoin into year-end,” the strategists said.
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks