JPMorgan Chase: 3 reasons why Bitcoin recently returned to $55,000

In a report, American banking giant JPMorgan Chase outlined some of the key reasons behind Bitcoin’s recent rally to a multi-month high of $55,793.

Among them, "Fed Chairman Powell made it clear that the Fed has no plans to crack down on cryptocurrencies" was listed as the main factor in the recent price surge. In addition, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, also stated that the agency has neither the authority nor the intention to ban digital assets.

JPMorgan also believes that the rapid adoption of the Lightning Network, whose capacity recently exceeded 3,000 BTC, has also driven the rally. Finally, Bitcoin is gradually replacing gold as a hedge against inflation. The resurgence of investor concerns about inflation has rekindled interest in using Bitcoin as an inflation hedge.