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Bitcoin’s ($BTC) price has seen a new bullish surge with the start of October. The top cryptocurrency has already recovered its losses from the past month and hit a new 5-month high above $56,000. Amid growing bullish price momentum institutions seem to be coming back to $BTC again and as per a recent JP Morgan note, these institutional investors are ditching gold for Bitcoin. The note also attributed the recent $BTC price rally to the assurance from the US that they have no plans of banning Bitcoin.
The major factor that is driving institutional investors away from Gold and towards Bitcoin is growing inflation in the market. JP Morgan believes institutional investors are looking at $BTC as a better inflation hedge at this point than gold.
“The re-emergence of inflation concerns among investors has renewed interest in the usage of bitcoin as an inflation hedge,” JPMorgan said. “Institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold.”
While market analysts are bold on their $100K BTC price prediction at the end of the year, JP Morgan’s note about Bitcoin only reinforces top cryptocurrencies growing demand in the market.
Bitcoin Eyes New ATH in Final Quarter of 2021
Bitcoin is currently 17% down from its ATH of $64,683 set in April earlier this year. Bitcoin reached a short-term market top in April following which the price of the top cryptocurrency fell by more than 50% in May and June and now it is gearing up for another first-quarter like a rally. The sentiments have turned bullish again and the number of wallets in profits has also reached a monthly high.
Bitcoin has thrived at times when the traditional market was in a downturn as seen during the first quarter which was also the peak when the Coronavirus crisis hit the peak. The financial market is looking fragile again with the Evergrande crisis ticking like a time bomb and this is one of the key reasons institutional investors are ditching Gold and other traditional hedges for Bitcoin.
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