Bitcoin (BTC) this week saw an increase of 35%, surpassed the $ 50,000 price level and managed to regain a market value of over $ 1 trillion.
The surge this time shows a positive signal from institutional investors who are looking for inflation protectors.
According to JPMorgan analysts, institutional investors have already begun to show concern over the resurgence of inflation, prompting them to be interested in Bitcoin (BTC) as an inflation hedge:
"Institutional investors are turning to Bitcoin, probably because they see this asset as much better as an inflation hedge than gold."
This statement is in stark contrast to JPMorgan’s report in May. At the time analysts claimed a large number of institutional investors had switched from BTC to gold.
Two other factors that JPMorgan emphasizes include:
Confidence in the growth of the crypto sector follows a statement by lawmakers that there are no plans to curb crypto trading.
The increased use of the Lightning Network and tier-2 payment solutions, largely driven by the adoption of Bitcoin in the El Salvador economy.
The firm, however, did not highlight another factor of concern this week, namely the approval of the Bitcoin ETF application by the Securities and Exchange Commissions (SEC).
At the time of writing, BTC is trading at $ 54,093, down nearly 1% in 24 hours and still maintaining an uptrend with a record 23.22% in a week.
