JPMorgan Names Trigger for New Bitcoin ATH and It’s Not BITO ETF Launch

JPMorgan Names Trigger for New Bitcoin ATH and It’s Not BITO ETF Launch

As per the recent Bloomberg piece, JPMorgan investment banking behemoth reckons that it was not the BITO Bitcoin ETF launched on the NYSE on Tuesday that pushed the flagship cryptocurrency to a new all-time high of $66,930.

“Bitcoin’s historic peak fueled by inflation concerns”

Strategists of JPMorgan reckon that the most likely reason for the massive Bitcoin rise to a new all-time high on Wednesday has been inflation, rather than the BITO Bitcoin ETF rolled out by ProShares on the Fidelity’s NYSE on October 19. This means BTC is rising due to the monetary access, comments chief economist at Tressis, Daniel Lacalle.

Nikolaos Panigirtzoglou and the bank’s other strategists wrote that an ETF launch was unlikely to attract a lot of new capital into the leading digital asset. According to them, the reason is rather people believing Bitcoin to be a stronger hedge against inflation than gold. They have been watching cash moving out of gold ETFs and into Bitcoin since the start of September.

JPMorgan Says Bitcoin’s Record Run Is Being Driven by Inflation.Which means it is driven by monetary excess.— Daniel Lacalle (@dlacalle_IA) October 21, 2021

Investors shifting from gold to Bitcoin; BTC ETF hype fades quickly

As per JPMorgan experts, gold has recently been losing trust of investors as to its ability to withstand the inflation and they have been increasingly dumping gold to buy more Bitcoin.

An example of this is the SPDR Gold Shares ETF holding $56 billion (GLD) that has been facing massive funds withdrawals in the past several months and has lost $3.6 billion already, as per the data from Bloomberg.

JPMorgan pointed out that aside from BITO, investors have a wide range of products to buy – Canadian Purpose Bitcoin ETF (BTCC) is among them. The strategists say that BTCC also saw a very good start but the hype then faded out. Therefore, they say, the same may happen to BITO after a week of its launch.

Paul Tudor Jones says BTC winning against gold

As reported by U.Today recently, billionaire investor Paul Tudor Jones stated that Bitcoin is winning the race against gold as more investors have been choosing the former as an inflation hedge, rather than gold.

He added that the world is moving into a digitized stage and therefore the digital gold is winning over physical one.

As for the Bitcoin ETF launched by ProShares, Tudor Jones stated that he prefers to own physical BTC rather than buy into an ETF that tracks its performance.

Peter Schiff still believes in gold

However, gold bug and a vocal Bitcoin hater Peter Schiff reckons that a rally of gold is also coming soon. He made this conclusion based on CNBC hosts together stating that gold is losing to BTC and so he considered this “exactly the analysis one would expect to hear from CNBC just before a major gold rally”.