Bitcoin has finally crossed the $50k price mark and is currently trading at $54,217 (at the time of writing). The flagship cryptocurrency saw a price surge of around 35%, which was driven by institutional investors. The incredible price surge seen for BTC has restored the market capitalization of the digital asset at $1 trillion.
The institutional investors have reportedly been investing in Bitcoin instead of gold, which can be taken as an indication that the largest digital currency has surpassed the metal.
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What Does JPMorgan Have to Say?
JPMorgan recently shared a note with its clients. According to the note, the recent price increase seen for BTC is majorly credited to institutional investors looking for a hedge to inflation.
The JPMorgan analysts stated:
“The re-emergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation hedge,”
There is also a massive possibility that the interest of major investors has shifted from gold to Bitcoin.
“Institutional investors appear to be returning to Bitcoin perhaps seeing it as a better inflation hedge than gold“
Michael Saylor also took to Twitter and shared the following post:
Institutional investors are not the only ones rooting for Bitcoin at the moment. Kevin O’Leary, Canadian businessman and Shark Tank star, stated that crypto has a larger portion than gold in his portfolio.
According to the analysts at JPMorgan, two possible factors may have contributed to the recent price surge seen for Bitcoin:
- The recent assurance by policymakers in the United States who have stated that they do not intend to ban the usage or mining of digital assets, as China did.
- Adoption of BTC by El Salvador, which caused a recent increase of 2nd layer payments solutions and Lightning Network.
Can Bitcoin See a Further Price Surge?
Bitcoin has seen quite the struggle, after which it has finally crossed the $50,000 price region.
Here is a graph by CoinGecko that shows the price fluctuations of Bitcoin over the last month.
The price surge seen for the flagship crypto asset has been quite impressive and has caught the attention of people who were somewhat skeptical about it.
The recent price increase has also made the digital currency more prominent and may have put it above the famous metal, gold.
However, whether BTC will see a further price surge or not can only be made clear with time.
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