Cryptocurrencies
JPMorgan Says Bitcoin’s Record Run Is Being Driven by Inflation
- Strategists say optimism over first U.S. ETF unlikely to last
- Bitcoin is being seen as a better inflation hedge than gold
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Inflation concerns rather than exuberance about the first U.S. Bitcoin futures ETF is driving the digital currency to record highs, according to JPMorgan Chase & Co. strategists.
“By itself, the launch of BITO is unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin,” wrote strategists including Nikolaos Panigirtzoglou, 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.”