JPMorgan: Volatility Could Prevent Bitcoin From Holding at $50,000

JPMorgan analysts have suggested that Bitcoin will not be able to hold the record price level ahead of a substantial decline in volatility. This was written by bank strategist Nikolaos Panigirtzoglou in a note for investors.

He noted that the market capitalization of the first cryptocurrency rose by $700 billion since September 2020. The analyst attributed this to the growing role of retail investors and traders.

“Movements since January 2021 have been driven largely by speculative inflows. To sustain current prices, the share of real money would need to rise and the number of retail investors would need to shrink,” said Panigirtzoglou.

On February 17, Bitcoin breached the $51,000 level.

Earlier, JPMorgan expressed willingness to support the trading of the leading cryptocurrency when there is client demand.

Earlier, JPMorgan analysts suggested that big companies would not follow Tesla’s example and would not invest in Bitcoin due to the asset’s high volatility.

According to a Gartner poll of finance chiefs, only 5% are prepared to consider allocating reserves in digital gold.

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