JP Morgan’s analysis showed that the cause of Bitcoin’s recent sharp rise was inflation, not the US’s first exchange-traded fund (ETF) approval. (Source = Yonhap News)An analysis showed that the cause of Bitcoin’s recent sharp rise was inflation, not the first US exchange-traded fund (ETF) approval.
According to major foreign media such as Bloomberg on October 21 (local time), JP Morgan released an analysis that the steep price increase of Bitcoin is due to inflation effects, not ETF launches. According to foreign media reports, analysts at JP Morgan analyzed that “the perception that Bitcoin is a better inflation hedge asset than gold is the main reason for this rally.
In general, when inflation concerns grow, the preference for safe assets such as gold grows stronger, but analysts say an increasing number of investors are shifting from gold ETFs to Bitcoin ETFs. In fact, according to data compiled by Bloomberg News, the ‘SPDR Gold Shares ETF’, the largest gold ETF in the US for the past four months, is expected to outflow for the fourth month in a row.
Analysts at JP Morgan do not expect the recent bitcoin futures ETF listed on the US stock market to have a significant impact on the inflow of funds into the cryptocurrency market. They analyzed that “the launch of BITO itself will not trigger a new phase in which much more new capital will flow into Bitcoin.” BITO is the first Bitcoin futures ETF listed on the US stock exchange on the 19th (local time). This product rose 4.85% from the listing price from the first day of listing, followed by an increase of more than 3% on the second day of trading.
Regarding future prospects, JP Morgan expressed concern by citing the case of ETF products that debuted on the stock market in Canada first. They warn that “investors already have a variety of investment options” and that “the initial hype about BITO may go away in a week.”
Edward Moya, chief market analyst at foreign exchange broker Oanda, also said: “Bitcoin bullishness could last much longer, but the global energy crisis should not be ignored. It could be investigated,” he warned. “If the current bullishness continues, Bitcoin could climb to the $75,000 level, but it seems unlikely that the green light towards $100,000 will be turned on due to the global energy crisis,” he added.
Meanwhile, as of 4:07 pm on October 22, on the domestic cryptocurrency exchange Upbit, Bitcoin is trading at 76,155,000 won, down 4.32% from 24 hours ago. It was traded at a maximum of 80 million won or more until the previous day, but it is interpreted that it has entered a breath of fresh air due to the recent rapid price increase. According to CoinMarketCap, a global coin market relay site, Bitcoin is trading at $62,01.27 in the global market, down 2.88% from 24 hours ago.
Intern reporter Moon Ji-min
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]
