CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$26,213.00
  • ethereum
    ETH$1,578.29
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Here’s Why Bitcoin Soared 35% in Days, According to JP Morgan

    Here’s Why Bitcoin Soared 35% in Days, According to JP Morgan

    Author: Jordan Lyanchev

    Last Updated Oct 8, 2021 @ 10:29

    JPMorgan analysts explain why they believe bitcoin’s price went on a roll lately by reaching its highest level since mid-May of nearly $56K.

    Institutions have resumed their appetite for bitcoin instead of gold, claimed strategists from the giant Wall Street bank JPMorgan Chase & Co. Consequently, they attributed the recent price surge to new multi-month highs to substantial purchases coming from large investors.

    Guess Who’s Back?

    The demand for bitcoin from institutions is a relatively new concept in the cryptocurrency space. Until 2020, it was negligent at best, but the COVID-19 pandemic and the subsequent extreme measures undertaken by world governments changed the tides.

    Bitcoin turned from “magical internet money” into an investment tool that could serve as a hedge against the growing inflation. Prominent investors and institutions started rushing in late 2020 and early 2021, which propelled BTC’s price to shot up to $65,000.

    Shortly after, reports started emerging claiming that institutions had stopped accumulating large portions of the cryptocurrency; some even realized considerable gains in mere months and left the market.

    This also coincided with BTC’s price cool-off, which, combined with the most recent Chinese FUD, led to a 65% correction in two months.

    According to JPMorgan’s latest update on the matter, though, institutions have reemerged to the bitcoin landscape. Furthermore, they asserted that such investors could continue purchasing because they see bitcoin as the better alternative to gold.

    “Institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold.”

    With BTC increasing to roughly $55,000 as of now, this means that the cryptocurrency is up by 85% since the start of the year. In the same timeframe, gold – historically regarded as the most chosen safe haven tool – has declined by 7%.

    More Potential Reasons?

    JPMorgan’s analysts also touched upon a few other potential reasons behind BTC’s latest surge. Similarly to CryptoPotato’s article about it, they said it could be a positive reaction due to the encouraging words from US officials – Fed Chair Jerome Powell and SEC boss Gary Gensler – both of whom asserted that the country has no intentions to ban digital assets.

    Aside from the “re-emergence of inflation concerns” and the “usage of bitcoin as an inflation hedge,” the strategists also added that the growth of the Lightning Network could have played a role.

    The layer-2 payment solution has seen significant adoption as of late, being utilized from El Salvador and Twitter. Many people view it as the necessary improvement of the Bitcoin network, which could speed up smaller transactions and help avoid congestions.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • BitcoinMoon
      3 Factors That Could Initiate the Next Bitcoin Price Leg Up
    • coinbase_bitcoin
      Bullish: Bitcoin Reserves on Coinbase the Lowest Since December 2017
    • bitcoin_flash_cover
      Pyth Network Explains Why Bitcoin Flash-Crashed to $5,400 on September 20th
    Tags: Bitcoin Bitcoin (BTC) Price Gold JP Morgan
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Jordan Lyanchev
    More posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

  • bitcoin
    BTC$26,213.00
  • ethereum
    ETH$1,578.29
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    Quantstamp’s CEO: Here’s Why ‘Audited By’ for Crypto Security in 2023 is Not Enough (Interview)

    Quantstamp’s CEO: Here’s Why ‘Audited By’ for Crypto Security in 2023 is Not Enough (Interview)

    Deep Dive into Ethereum: What Changed A Year Post-Merge?

    Deep Dive into Ethereum: What Changed A Year Post-Merge?

    The Reports of Friend.tech Death Have Been Greatly Exaggerated (Opinion)

    The Reports of Friend.tech Death Have Been Greatly Exaggerated (Opinion)

    Exploring PayPal’s Foray into Cryptocurrency: A Game-Changer in Digital Finance

    Exploring PayPal’s Foray into Cryptocurrency: A Game-Changer in Digital Finance

    DeFi Without Native Rights Is Dead

    DeFi Without Native Rights Is Dead

    How Does the Shiba Inu (SHIB) Burn Work: Everything You Need to Know

    How Does the Shiba Inu (SHIB) Burn Work: Everything You Need to Know

    Crypto Will Go Away If There’s No Privacy: Interview With Anoma and Namada’s Adrian Brink

    Crypto Will Go Away If There’s No Privacy: Interview With Anoma and Namada’s Adrian Brink

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!