Investment bank analysts believe that the first cryptocurrency has managed to increase its value by 35% since the beginning of October due to a combination of several positive factors.
In the latest report for clients, analysts at investment bank JPMorgan listed three reasons why bitcoin has risen in price by 35% since the beginning of October, so that its price has exceeded $ 55.5 thousand for the first time since mid-May, writes Business Insider . The document states that the main reason for the rise in price of the first cryptocurrency is the increased demand for it from institutional investors. On October 8, Bitcoin is trading at $ 54.4 thousand.
“Institutional investors are returning to Bitcoin, perhaps seeing it as a better inflation hedge than gold,” the report said.
Also, the growth of bitcoin was facilitated by statements by American politicians, who assured that they did not plan to introduce tough bans on cryptocurrency, as the Chinese authorities did, analysts at JP Morgan are sure.
On October 1, the chairman of the Federal Reserve System (FRS) Jerome Powell said that his department did not plan to ban cryptocurrencies, but considered it necessary to tighten control over stablecoins. On October 6, the chairman of the US Securities and Exchange Commission (SEC) Gary Gensler made a similar statement.
JPMorgan believes that another reason that could lead to the growth of bitkin to $ 55 thousand is the growing popularity of the second layer of the Lightning Network payment protocol. It allows you to send instant transactions over a direct channel between network nodes, bypassing the main bitcoin blockchain.
At the end of September, one of the most popular social networks, Twitter, began supporting the Lightning Network protocol. Now users of the social network can send donations in bitcoins.