Economists at JPMorgan highlight why they think bitcoin’s price has been on a rampage recently, hitting its most excellent standard since mid-May of over $56k.
According to strategists at the world’s largest bank, JPMorgan Chase & Co, corporations have rekindled their interest in bitcoin rather than gold. The subsequent price increase was thus put down to remarkable multi-month peak levels due to significant acquisitions by wealthy investors.
Bitcoin has evolved into an investment instrument that may be used as insurance against inflationary pressures. Lately, capitalists and corporations have begun pouring into Bitcoin, causing the crypto currency’s price to soar to more than $65,000.
However, it should be noted that the Institutional market for bitcoin is a comparatively recent notion in the cryptocurrency world, having emerged just recently. Until 2020, it would have been at best neglectful, but the COVID-19 epidemic and the ensuing drastic measures taken by different governments tipped the scales.
According to the most recent report from JPMorgan on the subject, organizations have returned to the bitcoin scene. Moreover, they claimed that such investors would be able to continue to purchase bitcoin since they consider it to be a preferable investment alternative to gold.
With Bitcoin now trading at around $55,000, this is evident that the cryptocurrency has increased in value by 85 percent since the beginning of the year. The price of gold, which has traditionally been considered as the most popular relatively secure asset, has fallen by 7 percent over the same period.
The experts at JPMorgan likewise mentioned a few additional possible explanations for BTC’s recent rise in value.
Similar to the paper released by CryptoPotato on the subject, they affirmed that this could be a strong consequence of statements by two of the US executives – Fed Chair Jerome Powell as well as SEC Chairman Gary Gensler, both of whom stated that the nation has no intentions of banning digital investment vehicles in the near future.
The layer-2 payment system has recently gained widespread acceptance, with companies such as El Salvador putting it to use. Undoubtedly, this will assist in speeding up minor operations and prevent overcrowding, meanwhile being an essential upgrade to the Bitcoin community.