JPMorgan Says Bitcoin Growth is Propelled by Inflation

• Analysts from JPMorgan suggest that the cause for recent Bitcoin ($BTC) price increases are mainly due to investor concerns over inflation rather than the release of the first Bitcoin exchange-traded fund (ETF).

• ProShares’ Bitcoin Strategy ETF $BITO launched on Tuesday and saw the highest ever first day trading volume for an ETF. While transacted volume and media effect of the ETF release have been impressive, JPMorgan has stated that “it is unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin.”

• Investors continue to search for a hedge against inflation worries as general costs of living continue to increase world wide including food prices, housing, and other sectors.

• Many believe that gold, the traditional asset to turn to during inflationary periods, has failed to respond to these concerns and that Bitcoin stands as the superior inflationary hedge.

• The analysis from the bank indicates that investments from gold ETFs into Bitcoin funds has continued to increase since September and “supports a bullish outlook for Bitcoin into the end of the year.”