Late 2020 saw bitcoin make an amazing recovery from its price slump at the beginning of the COVID-19 pandemic. After months of increased institutional support, bitcoin’s price rose sharply to over $60,000, a new all-time high. When the figure briefly dipped below $60,000, there were concerns about an incoming bear run similar to the one that occurred after the massive bull cycle of 2017.
So far, the bitcoin price appears to be fairly stable and according to a recent note from JPMorgan
, this current price stability will make the token more attractive to institutional investors.
JPMorgan on Bitcoin
The investors’ note claims that investors who wish to diversify their portfolio might find bitcoin an attractive offer. In the past, such investors might have been turned off from bitcoin due to its notorious volatility but now that the price appears to have stabilized, more adoption is likely to occur.
Investors seem to have taken the bait so far, as there are more entrants into the bitcoin market than ever before. Other assets, such as gold, have seen a departure from investors as more of them are turning towards digital assets. Since October, gold has seen a $20 billion outflow compared to the $7 billion inflow into the bitcoin market.
