Bitcoin (BTC) reached an all-time high on Tuesday, following the debut of ProShares’ Bitcoin Strategy exchange-traded fund (ETF), BITO, but JPMorgan Chase strategists say market worry over inflation is the primary reason. According to JPMorgan analysts, the BITO debut, which experienced the highest-ever first-day natural volume for an ETF, is “unlikely to ignite a new phase of considerably more fresh money into Bitcoin.” JPMorgan’s Concern Over Bitcoin Price Increase Driven by Inflation Worries Instead, JPMorgan argues that because gold has failed to respond to worries about growing cost pressures in recent weeks, Bitcoin’s re-emergence as a superior hedge against inflation in the eyes of investors is the primary reason for the current bull run. The team stated that the movement away from gold ETFs and toward Bitcoin funds has been gaining momentum since September and supports a positive view for Bitcoin towards the end of the year. JPMorgan strategists highlighted the decreasing enthusiasm following the debut of the Purpose Bitcoin ETF (BTCC) in Canada, suggesting that the early euphoria around BITO may similarly wane within a week. ProShares’ Bitcoin Strategy ETF debuted on the New York Stock Exchange (NYSE) on Tuesday as the first Bitcoin-futures-linked ETF in the United States, with an opening price of $40 per share. It provides direct exposure to Bitcoin futures in a regulated market. Carl Icahn Believes Bitcoin May Be the Best Inflation Hedge Billionaire investor Carl Icahn expresses concerns that the US dollar is depreciating and the cost of the product is rising. According to Icahn, Bitcoin (BTC) may be the finest inflation hedge. The next market catastrophe might be on the horizon, and Bitcoin could be an excellent hedge. “In the long run, we are certainly going to hit the wall. I really think there will be a crisis the way we are going, the way we are printing money, the way we are going into inflation. If you look around you, you see inflation all around you, and I don’t know how you deal with that in the long term,” Icahn stated on Monday with CNBC.
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