Investors Dump Gold For Bitcoin as BTC Reaches $55,000
Investment bank JP Morgan has disclosed that institutional investors are diverting their money from gold to Bitcoin
The firm’s analysts claim that investors have tipped BTC to be a better hedge against inflation than gold
The flagship cryptocurrency has rallied almost 40% after assurances that U.S. policymakers will not ban cryptocurrencies
World’s top investment bank JP Morgan has claimed that the drastic rise of Bitcoin in October has been down to 3 main factors.
The firm’s analysts stated that the price of the cryptocurrency has skyrocketed because institutional investors are diverting money into BTC from gold.
According to JP Morgan, the investors believe BTC to be a better hedge against inflation than gold.
The firm’s analyst wrote:
“Institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold.”
Investors who are worried about their money losing value due to inflation have diverted their assets into BTC.
The analysts disclosed that another factor responsible for the rise of Bitcoin is assurances by policymakers that the US will not follow China in banning BTC.
This was confirmed by both the Federal Reserve Chairman Jerome Powell and SEC Chairman Gary Gensler in separate appearances last week.
Finally, JP Morgan detailed that El Salvador’s adoption of the flagship cryptocurrency has helped Lightning Network and 2nd layer payments solutions.
It’s been a month since El Salvador officially made Bitcoin its legal tender and since then the country has bought 700 BTC with 3 million Salvadorans using the Chivo BTC wallet.
BTC is up by almost 40% in October, rallying from a September low of $39,787 to $55,700.