Bitcoin ($BTC) price recorded a new all-time-high near $67K yesterday, taking Bitcoin’s market cap to $1.25 trillion. The bullish price surge was largely attributed to the record-breaking ProShares Bitcoin Futures ETF ($BITO) debut. However, JP Morgan strategists believe otherwise. According to a report by Bloomberg, JP Morgan strategists see growing inflation as the key catalyst behind $BTC’s price surge.
“By itself, the launch of BITO is unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin,” wrote strategists including Nikolaos Panigirtzoglou, 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.”
JP Morgan said that investors are looking for a better inflation hedge than gold and that’s why BTC’s demand has soared in the recent past. The strategists also cited the example of plenty of ETF options already available in the market before the $BITO launch and also claimed the hype around the first Bitcoin Futures ETF would die down soon.
JP Morgan claiming BTC is a better inflation hedge than gold came as a surprise to many given the CEO Jamie Dimon’s known disliking for the top cryptocurrency.
JP Morgan is not the Only Institution that Sees BTC as Infaltion Hedge
The market sentiment around Bitcoin has become extremely bullish again as the top cryptocurrency set a new ATH. Peter Thiel, the co-founder of PayPal also lauded Bitcoin recently in his interview where he called it the “hope” in the fight against tyranny. Thiel also said he is underinvested in Bitcoin while slamming central banks for their flawed policies.
$BTC is currently trading at $64,808 with 1.05% gains over the past 24-hours. The top cryptocurrency has seen a minor retrace from its yesterday’s ATH of $66,971.