When it comes to hedges against inflation, Bitcoin is looking more and more like the new gold, according to a Thursday note JP Morgan shared with clients Thursday.© Camilo Freedman/Bloomberg

Bitcoin has been on a run lately, surpassing $50,000 for the first time in a month, and up 87% year-to-date. Gold is down 7.3% in the same time span.

Bitcoin has seen large fluctuations this year, but that doesn’t seem to be bothering investors. According to JP Morgan’s Thursday note, “Institutional investors appear to be returning to Bitcoin perhaps seeing it as a better inflation hedge than gold.”

The note comes to no surprise for those who have been following investments in Bitcoin in 2021. In April, the crypto exchange Coinbase reported in its first quarter report that of the $335 billion in trades the company hosted that quarter $215 billion came from more than 8,000 institutional investors.

Part of the motivation for these deep-pocketed investors to invest in Bitcoin and other similar cryptocurrencies is the their built-in protection against inflation.

Source Bitcoin not gold is the new inflation hedge, says JP Morgan (msn.com)

By block head

Block Head is a blockchain journalist.