Bitcoin (BTC) has led a 35% rally this week past soaring far to a higher place the $50,000 resistance level and restoring a $1-trillion market capitalization to the asset.

Co-ordinate to a note shared by JPMorgan with clients on Th, the recent increase in price for BTC was predominantly attributed to institutional investors looking for a hedge to aggrandizement.

"The re-emergence of aggrandizement concerns amidst investors has renewed interest in the usage of Bitcoin as an inflation hedge," the analysts said, arguing there has been a shift in perception equally to the claim of BTC in relation to gold.

"Institutional investors announced to be returning to Bitcoin maybe seeing it every bit a improve inflation hedge than gilded."

Institutions aren't alone there.Shark Tank star Kevin O'Leary stated earlier this week that crypto now accounts for a larger allotment in his portfolio than gilded does.

The momentum toward Bitcoin is in contrast to a JPMorgan study in May when analysts noted large investors at the time were switching out of Bitcoin and into traditional gold.

JPMorgan provided two other factors it believes are behind the electric current rally.

"The recent assurances by The states policy makers that in that location is no intention to follow Cathay'southward steps towards banning the usage or mining of cryptocurrencies," the analysts noted, as well as:

"The recent rise of the Lightning Network and second layer payments solutions helped by El Salvador's Bitcoin adoption."

Dissimilar other analysts this week, JPMorgan did not cite speculation around the imminent approval of a Bitcoin futures substitution-traded fund as a significant commuter of the toll.

BTC is trading at $53,884.76, co-ordinate to CoinMarketCap, at the time of writing.

Related: Crypto exposure has positive impact on investment portfolios, study shows

Despite some divisions of JPMorgan expressing a growing involvement in crypto assets and blockchain initiatives, CEO Jamie Dimon stated in an interview on Monday that he remains a skeptic of BTC and even compared it to "a little scrap of fool's gold."