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First bank in the United States JP Morgan Chase & Co. (NYSE: JPM) said in a note to clients that he was seeing Bitcoin(CRYPTO: BTC) becoming substitute gold as a financial asset.
See also: IS BITCOIN A GOOD INVESTMENT?
What happened: According to a Friday Fortune report, a JPMorgan memo on Thursday said that “institutional investors appear to be reverting to Bitcoin, possibly viewing it as a better hedge against inflation than gold.”
Although it corrected from highs reached earlier this year, Bitcoin recently climbed back above $ 55,500 with alleged help from institutions while gold is down 7.3% in the month. latest.
JPMorgan analysts also suggest that Bitcoin’s high volatility does not seem to bother investors and that institutional interest is further highlighted by events this year such as the listing of crypto exchanges. Coinbase Inc. (NASDAQ: COIN) having no difficulty in achieving astronomical capital inflows.
Additionally, Coinbase noted in its first quarter report that of the $ 335 billion in transactions the company hosted this quarter, $ 215 billion came from more than 8,000 institutional investors.
The JPMorgan report suggests that “the resurgence of inflation concerns among investors has renewed interest in using Bitcoin as an inflation hedge.” Dawn Fitzpatrick, head of George Soros’ fund – the man who “broke the pound” – also revealed at a Bloomberg event that the fund has a few coins, but “not a lot”.
Investment star Kevin O’Leary also revealed earlier this week that his crypto holdings exceed the funds he has allocated to gold.
JPMorgan suggests second layer payment solutions have given Bitcoin bulls new strength. Specifically, the rise of the Lightning Network scalability solution and other solutions has been “aided by the adoption of Bitcoin by El Salvador.”
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