According to JPMorgan analysis, this week’s bitcoin rally was part of the institutional Investment in bitcoin and positive stances of the regulators over crypto.
JPMorgan shares report on the rally of this week with their clients. Through the report, JPMorgan claimed that the main reason for bitcoin rally was a part of the institutional Investors in bitcoin.
And also according to JPMorgan, the point of view on bitcoin is changed by the investors. Because Bitcoin is now digital gold.
“Institutional investors appear to be returning to Bitcoin perhaps seeing it as a better inflation hedge than gold.”
Beside this, JPMorgan considered two other factors, which boosted the push for the rise in the price of bitcoin. The first one is because of the regulators of US departments, where they stated that they have no intention to ban crypto (Gary Gensler said). And also Mr Powell, Fed chair, stated that they will not ban crypto.
Another reason behind the boost in the price of bitcoin was, initiative of El Salvador to adopt Bitcoin as legal tender through the adoption of Bitcoin lighting networks.
“The recent rise of the Lightning Network and 2nd layer payments solutions helped by El Salvador’s Bitcoin adoption.”
The reason behind the rally of Bitcoin, suggested by the JPMorgan, seems much unique because before this no one talked about such things. These were the main reasons. While other experts still believe that the Bitcoin ETF based filing approval decision date scheduled to 18 October was the major reason behind the bitcoin pump.
If we look at the growth of Bitcoin price, then Bitcoin is at $53,884.76, at the time of writing this article. And the price of bitcoin has surged by around 35% in the last one week.