Institutional investors are returning to bitcoin, according to JPMorgan, since the cryptocurrency is a stronger hedge than gold right after bitcoin rally.
Institutional investors are returning to bitcoin, according to a research paper published by JPMorgan on Thursday. The firm’s analysts wrote: Citing the trend of money flowing out of gold and towards Bitcoin, they wrote:
According to the analysis, the previous trend of institutional money pouring out of gold and into bitcoin has resurfaced in recent weeks.
The acceptance of bitcoin as a greater store of value than gold by large investors has prompted a rise in the amount of money flowing into BTC.
In addition to institutional players preferring bitcoin over gold as a store of wealth, JPMorgan revealed two other variables that may have influenced bitcoin’s price.
A user wrote, “Bitcoin to be world reserve currency. America is going to default theie debt.”
Another user screwed satire on the institution by acting unknown about bitcoin.
Recent remarks by Jerome Powell, the chairman of the United States Federal Reserve, have also encouraged investors to buy in BTC.
Powell stated that there are no plans to ban bitcoin in the United States, signalling that the US will not follow China’s lead.
“The recent growth of the Lightning Network and 2nd layer payments solutions, aided by El Salvador’s bitcoin adoption,” according to JPMorgan, has also contributed to growing confidence in the Bitcoin network and its potential to scale.
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