JP Morgan report writes:
“The re-emergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation hedge. Institutional investors appear to be returning to Bitcoin perhaps seeing it as a better inflation hedge than gold.”
The bank also highlights two more factors that are driving institution investors interest:
“The recent assurances by US policymakers that there is no intention to follow China’s steps towards banning the usage or mining of cryptocurrencies.”
“The recent rise of the Lightning Network and 2nd layer payments solutions helped by El Salvador’s bitcoin adoption.”
Contrary to other analysts, JPMorgan did not mention the possibility of the approval of Bitcoin ETFs as a key element in the rise of BTC prices and investors’ interests.