Bitcoin is currently trading at all-time highs of around $65,000. Yesterday, the primary cryptocurrency reached an all-time high of around $67,000, according to CoinGecko. Many have attributed these gains to the approval of the ProShares Bitcoin Strategy ETF earlier this week. However, JPMorgan has a different reason for the bull run.
The Wall Street financial institution stated that the recent surge in Bitcoin’s prices is due to the fear of inflation from people who now prefer to hold their income in the form of cryptocurrencies compared to fiat currency.
Inflation Triggers Bitcoin’s ATH
The ProShares Bitcoin Strategy ETF started trading on October 19, which coincided with Bitcoin’s rise to six-month highs. When news of a Bitcoin futures ETF getting regulatory approval hit the market last week, Bitcoin climbed to around $60,000. However, JPMorgan’s strategists have stated that it is highly unlikely for an ETF to cause an increase in Bitcoin’s prices.
Nikolaos Panigirtzoglou and other strategists at the bank stated that the launch of an ETF did very little to attract new capital into Bitcoin. These strategists believe that more people are buying Bitcoin because they believe it is a better option than gold to hedge against inflation. The strategists further state that investors have been transferring capital from gold ETFs to Bitcoin ETFs.
ETF Hype will die
JPMorgan also stated that the ETF hype would die down. The bank’s strategists stated that investors interested in these products have many options in the market, including the Canadian Purpose Bitcoin ETF (BTCC). Moreover, they point to how the hype surrounding this ETF died down a week after the launch.
Whether the Bitcoin rally is being influenced by ETF’s or inflation, many analysts have stated that the race towards $100,000 is now more certain. Having created new all-time highs and new gains looking possible, Bitcoin is expected to continue pushing forward and create record highs.
Elon Musk is among the crypto enthusiasts cheering Bitcoin’s rally. The Tesla CEO believes that the primary cryptocurrency will reach $69,000 soon. He is among the many Twitter followers who have posted a meme depicting Bitcoin at these numbers. With Valkyrie and VanEck Bitcoin futures ETFs expected to debut in the coming days, these levels could be achieved soon.
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