Analysts at one of the largest American banks, JPMorgan, predict an increase in demand for the first cryptocurrency. Four factors contribute to strengthening the position of Bitcoin among investors, experts noted.

Bank experts led by Nikolaos Panigirtzoglou said that the increase in interest in Bitcoin was caused by a 4-5% depreciation of the dollar and a sharp drop in real yields on US Treasury bonds. The stock has fallen 50-80 basis points over the past few weeks.

At the same time, the growth in demand for the first cryptocurrency exceeded initial expectations, which indicates the influence of additional factors, such as:

  • growing tensions in the world since 2022;

  • increased concerns about inflation;

  • government budget deficits of developed countries;

  • a sharp decline in confidence in fiat currencies, especially in some emerging markets.

These reasons create conditions in which investors pay attention to safe assets in order to preserve their capital, JPMorgan experts noted.

Earlier, the trading company QCP Capital analyzed the impact of the political situation on the crypto market. According to analysts, despite the escalation of the conflict between Israel and Iran, the first cryptocurrency could rise to $110,000 by the end of the year.