Bitcoin continues to consolidate in the $50,000 range. At the same time, JPMorgan observes a rising migration of institutional investors from physical to digital gold.
The crypto market is once again under the sign of the “Uptobers” today. Although the cryptocurrency has to slightly lose ground overnight, Bitcoin’s figures remain impressive on a weekly basis. The digital store of value is down 1.5 percent compared to yesterday, but still has a gain of almost 23 percent over the last seven trading days. At press time, Bitcoin is trading at $53,845, continuing to consolidate in the area above the 50,000 mark.
The altcoin sector, meanwhile, has yet to fully benefit from Bitcoin’s upswing. Within the ten most valuable cryptocurrencies, both Ripple and Solana are posting slight price declines of 0.4 and 1.05 percent, respectively. Dogecoin is trading razor thinly up 0.2 percent. Ethereum and Binance Coin are both up 1.2 percent. Cardano and Polkadot, on the other hand, are up more – 4 and 7 percent, respectively.
The daily winner among the top 100, however, is Fantom. The FTM token of the smart contracts platform gained 22 percent overnight. Shiba Inu (SHIB), on the other hand, suffered the biggest setback. After the Dogecoin clone started a brilliant rally in the past few days and even overtook long-established crypto projects such as Litecoin for a short time, SHIB is now heading south again. At press time, Memecoin is down nearly 23 percent overnight.
“Bitcoin more popular than gold with instis”.
Meanwhile, more bullish news is coming out of the US. As reported by several US media outlets, JPMorgan highlighted the first reasons for Bitcoin’s sudden price increase in an investor note. Due to rising inflation, especially institutional investors would rediscover the value-storing property of Bitcoin for themselves – no wonder, the current inflation rate in the US is currently 5.3 percent, according to estimates by TradingEconomics. In Germany, too, the Fed Stats an inflation increase of 4.1 percent. JPMorgan concludes:
Resurgent inflation concerns among investors have renewed interest in using bitcoin as an inflation hedge … Institutional investors seem to be returning to bitcoin as they seem to think it is a better inflation hedge than gold.
That sounded entirely different a few months ago. When the flash crash in mid-May dragged the entire crypto market deep into the red price swamp, JPMorgan saw einstitutional investors migrated from bitcoin to gold. At the time, the bank cited open interest data on the Chicago Mercantile Exchange, where it observed the “largest decline in bitcoin futures trading since the late 2020s.