JPMorgan Says Bitcoin Record Run Driven By Inflation

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  • 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.”

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