JPMorgan: Bitcoin volatility normalisation could revive institutional interest

Analysts at JPMorgan noted that the real volatility of the world’s first cryptocurrency over six months stood at 72%, well below the levels seen during the 2017 bull run, Bloomberg reports.

«In recent weeks, we have seen a peak in Bitcoin volatility and signs that it is easing from end-February levels,» the researchers said.

JPMorgan added that the normalisation of the metric could revive institutional interest in digital gold.

According to analysts, in Q1 2021 institutional interest in the world’s leading cryptocurrency declined compared with Q4 2020.

In January Bloomberg wrote that many Wall Street fund managers reconsidered investing in bitcoin after a price drop of more than 25%.

Earlier in February, JPMorgan analysts suggested that high volatility could hinder digital gold from sustaining the $50 000 level.

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