- Inflation issues are driving Bitcoin’s document run, JPMorgan strategists mentioned.
- Gold is failing to carry out as an inflation hedge, prompting traders to rotate into BTC.
- “We believe the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing,” the strategists mentioned.
Concerns that inflation will maintain rising and never be transitory is the principle driver for the Bitcoin worth pushing to new highs — not the primary U.S. bitcoin futures exchange-traded fund (ETF) — JPMorgan strategists mentioned, in accordance to a Bloomberg report.
“By itself, the launch of BITO is unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin,” wrote strategists, per the report, referring to the ProShares Bitcoin Strategy ETF. “Instead, we believe the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs into Bitcoin funds since September.”