JPMorgan argues that concerns about inflation, not ETFs, are causing Bitcoin’s price to rise

Bitcoin (BTC) hit its highest ever price on Tuesday after ProShares launched the Bitcoin Strategy Exchange Traded Fund (ETF), BITOHowever, JPMorgan Chase strategists believe the main driver behind the price jump is investor concern about inflation.

The launch of BITO, which recorded the highest Natural volume for an ETF on the first day, “is unlikely to trigger a new phase of significantly cooler capital impact in Bitcoin”JPMorgan strategists said in a note.

Instead of this, JPMorgan believes Bitcoin’s renewed role as a better inflation hedge is the main driver behind the current bull run in the eyes of investors as gold has not responded to concerns about rising cost pressures in recent weeksThe team found that the move from gold ETFs to bitcoin funds has accelerated since September and “Supports a bullish outlook for Bitcoin through year-end.”

JPMorgan argues that concerns about inflation, not ETFs, are causing Bitcoin’s price to rise
JPMorgan argues that concerns about inflation, not ETFs, are causing Bitcoin’s price to rise

JPMorgan strategists illustrated the decline in interest after the first week after the Purpose Bitcoin ETF (BTCC) was launched in Canada. even the initial hype about BITO could ebb after a week.

As the first ETF tied to Bitcoin futures in the US, ProShares’ Bitcoin Strategy ETF traded on the New York Stock Exchange on Tuesday at an opening price of $ 40 per share.. Allows investors to get direct exposure to cryptocurrency futures on a regulated market.

JPMorgan’s comments echo those of traditional finance: Billionaire investor Carl Icahn hailed Bitcoin as a great protection against inflation as the next market crisis looms on the horizon.

Bill Winter, CEO of the UK bank Standard Chartered, recently stated that a long period of low inflation was over, adding that “it is perfectly reasonable that people want an alternative to fiat currency”.

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