Bitcoin’s Price Volatility May Hamper Its Progress Above $50K, JPMorgan Says


Bitcoin’s price volatility needs to subside for the cryptocurrency to continue its stellar rally, according to analysts at investment banking giant JPMorgan.

In a note on Tuesday reported by Reuters, the analysts drew attention to bitcoin‘s high volatility relative to gold, the classic inflation hedge, as an obstacle to significant gains beyond current levels around $51,000.

“Bitcoin’s three-month realized volatility, or actual price moves, is 87% versus 16% for gold – an asset, proponents say it could threaten,” the investment bank said.

While bitcoin is increasingly described as “digital gold,” skeptics believe the cryptocurrency is too volatile to find wide acceptance in institutional portfolios. Even so, several publicly listed companies such as Tesla and MicroStrategy have diversified cash holdings into bitcoin over recent months.

Bitcoin reached a new lifetime high of $51,735 early on Wednesday, taking the year-to-date gain to over 75%, according to CoinDesk 20 data.



Source link

Latest articles

This key resistance level can hinder Bitcoin from reaching ATHs

This key resistance level can hinder Bitcoin from reaching ATHs Earn up to 12% APY on Bitcoin, Ethereum, USD, EUR, GBP, Stablecoins...

Tether (USDT) faces criminal probe in the US, report says

Tether (USDT) FUD surrounding the stablecoin’s issuance could have a new chapter in the form of criminal charges, which would mark a major...

Early crypto exchange boss says China remains 50/50 on outright Bitcoin ban

The co-founder and former CEO of crypto exchange BTCC, Bobby Lee, said Beijing could move to ban Bitcoin entirely.Recent FUD activity, coming from...

Binance cuts AUD, EUR, GBP trade pairs amidst regulatory crackdowns

Crypto exchange Binance announced it is delisting margin trading pairs for three fiat currencies, namely the Australian dollar (AUD), the Euro (EUR), and...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here