Claim BonusWhy Institutional Investors are Buying Bitcoin ($BTC) Over Gold?
Bitcoin’s ($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.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Solana Airdrop: Seeker Team Confirms 1.8B SKR Token Drop for Users, Here’s What to Know
- Crypto Traders Bet on Bitcoin Price Hitting $100K Before Month-End as BTC Breaks $97k
- Arthur Hayes Predicts BTC Price to Surge in 2026 Amid Dollar Liquidity Expansion
- Ethereum Staking Hits Record Highs as BitMine Continues to Stake ETH
- CLARITY Act Stalls as Senate Postpones Thursday’s Markup Amid Coinbase Backlash
- Dogecoin Price Forms an Inverse Head and Shoulders: Will DOGE Target $0.18 Next?
- Bitcoin Price Forecast: How the Supreme Court Tariff Decision Could Affect BTC Price
- Ethereum Price Prediction as Network Activity Hits ATH Ahead of CLARITY Markup
- Robinhood Stock Price Prediction: What’s Potential for HOOD in 2026??
- Cardano Price Prediction as Germany’s DZ Bank Gets MiCAR Approval for Cardano Trading
- Meme Coins Price Prediction: What’s Next for Pepe Coin, Dogecoin, and Shiba Inu Amid Market Rally?
