Crypto advocates have long argued that Bitcoin could serve as a safe haven amid government uncertainty because of its decentralized architecture, though the cryptocurrency has often traded in lockstep with traditional equity markets. But in recent months, investors have poured into Bitcoin amid threats of tariffs. The JP Morgan analysts argued that Bitcoin remains undervalued compared to another favorite hedge among investors: gold.
Not everyone agreed with JPMorgan’s rosy prognostication. Alex Blume, the founder and CEO of the investment advisor Two Prime, described Bitcoin’s recent gains as a “precarious rally” in commentary shared with Fortune, arguing that it might be caused by investors expecting a fourth-quarter rally. Still, Blume pointed out that even stock prices are trending upward, meaning that the market is reacting to broader monetary policy, including the Federal Reserve cutting interest rates. “There’s pretty much no other way to foresee the future other than more money printing, a net benefit for BTC,” he wrote.
