All prices are skyrocketing! Bitcoin is therefore an alternative
The price of gasoline, groceries, clothes, and so on are rising fast. Bitcoin is therefore an alternative to this and many people are looking for a way out.
Global investment bank JPMorgan says concerns about inflation (rise in general price levels) are pushing the price of Bitcoin to record highs. Noting that investors are withdrawing gold ETFs into Bitcoin funds, the bank noted, “The flow shift remains intact, supporting a bullish outlook for Bitcoin through the end of the year.”
Inflation drives Bitcoin up and is therefore an alternative
JPMorgan Chase analysts, led by Nikolaos Panigirtzoglou, released a research note last week explaining that inflation has pushed the price of Bitcoin to record highs rather than the hype surrounding the first US Bitcoin futures exchange-traded fund (ETF). .
The bank goes on to say, “Instead, we believe that the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current uptick, which has seen a shift from gold ETFs to Bitcoin funds since September.”
way up
The price of the popular coin rose to an all-time high of $66,899 on Tuesday. Now the currency is a bit lower, but the general trend is up. Everyone has confidence again. Bitcoin is up about 40% since the beginning of the month.
Not only have the JPMorgan analysts explained that the real driver behind Bitcoin’s price rise has been growing concerns about inflation, but they have also noted that it has prompted investors to seek investments that can serve as a hedge against this risk. such as gold and bitcoins.
Gold used to be an effective instrument to hedge against inflation. However, it has failed to respond to heightened concerns about rising cost pressures in recent weeks. All this drives the price up and will continue to do so for the time being.
