The price of bitcoin (BTC) once again experienced a new rally at the beginning of the last quarter of the year, with a jump of more than 30% in a few days that left it again above USD 50K. The strategists of the US bank JP Morgan produced a report in which they identified some factors responsible for the rise.
As happened at the end of 2020, institutional investors were once again the protagonists of a sharp jump in the price of BTC. Over the past year and a half, cryptocurrency has become a leading and serious asset when planning long-term investment strategies, and many see its present as a must-see opportunity to enter the market.
“Institutional investors seem to be turning to bitcoin, perhaps seeing it as a better hedge against inflation than gold, “reads the experts’ report. However, this interest is the product of the conjunction of other factors.
In the first place, the specialists underlined the recent declarations of the governor of the Federal Reserve (FED) and the president of the Securities and Exchange Commission of the United States (SEC) -Jerome Powell and Gary Gensler, respectively-, that no would ban the crypto market in the country . Those assurances served to dismiss rumors that suggested decisions similar to those made by China.
On the other hand, the crypto ecosystem has seen a significant increase in the Lightning Network and second-layer payment solutions aided by the adoption of bitcoins from El Salvador and the new functionality of sending tips in BTC on Twitter.
The truth is that BTC seems to have found support above $ 54,000, and will be looking to approach its all-time high of $ 64,400 in the coming days. An ATH before the end of the year no longer seems so difficult.