Inflation fears fueled bitcoin's move to all-time highs, not ETFs, JPMorgan says

Bitcoin (BTC-USD) marked new territory on Wednesday, reaching a new all-time high of $67.7K just a day after the first bitcoin futures exchange-traded fund, ProShares Bitcoin Strategy ETF (NYSEARCA:BITO) begins trading on the secondary market. The world's largest crypto by market cap has since pulled back to as low as $62.5K on Thursday, now changing hands at around $63.5K. However, JPMorgan strategists believe bitcoin's (BTC-USD) extensive rally is been driven by concerns over the inflation overshoot, potentially offsetting losses seen in the price of gold (NYSEARCA:GLD), which trades in net negative territory Y/Y. The bitcoin ETF launch is "unlikely to trigger a new phase of significantly more fresh capital entering Bitcoin," JPM strategists said in a note to clients. "The initial hype with BITO could fade after a week." Previously, (Oct. 7) Bitcoin's recent rally reflects increased use as inflation hedge, JPMorgan says.