Over the last 7 days, the price of Bitcoin grew by over 22.31%, surpassing $55.000 for the first time since mid-May. The coin's market cap hit $1 trillion.
New York-based major international investment bank JP Morgan noted the reasons for the surge. In a note from Thursday, the bank said Bitcoin's usage as an investment hedge has been increasing. Meanwhile, gold prices have been flat for around 2 years even in the current situation of rising inflation.
JP Morgan pointed out that the trend of money streaming out of gold and into BTC has started to rise in the last weeks. There are three main reasons mentioned for the surge. One is the recent announcements from the US authorities that they aren't going to follow China's example and ban crypto.
Another reason is El Salvador's bitcoin adoption and the recent rise of the Lightning Network and L2 payments solutions.The third reason is current inflation worries among investors.
Numbers show that investors have more confidence in Bitcoin than gold. This year, gold ETFs have lost over $10 B as a result of flow out. At the same time, Bitcoin funds attracted more than $20 B.