Forget gold, institutions are piling up Bitcoin (BTC) to hedge against rampant inflation.
BTC more attractive than gold, says JP Morgan Report
Institutional investors are more interested in the leading cryptocurrency than gold, especially when it comes to holding an asset to hedge against rising inflation, according to a recent statement from Wall Street giant JP Morgan Chase.
The multinational banking and financial services firm found that fears of a spike in uncontrolled inflation panicked institutional investors looking to hedge their long-term bets with a safe haven.
“The resurgence of investor inflation concerns has renewed interest in using Bitcoin as an inflation hedge,” JPMorgan said. “Institutional investors seem to be returning to Bitcoin, maybe they see it as better inflation protection than gold.”
In particular, the bank highlighted two main reasons why investors are doubling BTC versus gold as a hedging instrument.
The first of these reasons is the positive confirmation from the U.S. Treasury Department recently put on record that it will not ban cryptocurrencies. In addition, regulators also see current crypto market conditions as a ripe opportunity to capitalize on after China curtailed its local crypto ecosystem, as previously reported by BTCManager.
Second, the rapid rise and adoption of the Lightning Network and other scalable Bitcoin payment solutions. As BTCManager reported on July 15, the capacity of the Bitcoin Lightning Network has almost doubled in seven months to block more than 1,840 BTC.
To add to the list of possible reasons, El Salvador’s rollout of Bitcoin by making BTC one of the country’s legal tender also speaks volumes about the confidence that lawmakers around the world have in the most important digital asset and its own Future sets.
Bitcoin looking for a new ATH
After the spectacular crash on May 19 at the beginning of this year, the price of Bitcoin has risen steadily due to several regulatory upward developments.
As BTCManager reported on October 9th, up to 4 BTC futures ETFs can be approved in the US this month.
At press time, BTC is trading at $ 55,178, just 14.8% below its ATH value of $ 64,804.
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