Bitcoin continuously surpassed old peaks, is the “huge” uptrend sustainable?

Bitcoin continued to climb sharply beyond the $ 50,000 threshold. While many investors are hoping Bitcoin can replace the precious metal as a channel of storage in portfolios, JPMorgan warns that Bitcoin’s rise is unsustainable.

Bitcoin – the world’s most popular digital currency – hit a record 52,531 USD / bitcoin on Thursday 18.2 (in Vietnamese time) after breaking the $ 50,000 / bitcoin mark for the first time just over a day ago. there.

According to CNBC, some financial regulators believe that Bitcoin price could reach $ 1 million in the long term, but institutions like JPMorgan have warned of the risks if the digital currency continues to rise. price.

Analysts of the JPMorgan bank on February 17 stated that the record increase to $ 50,000 per bitcoin of Bitcoin will not be sustainable, unless the price fluctuations of the digital currency. quickly “cool down”. Bitcoin’s recent high volatility remains an issue for the digital asset, and it has been steadily rising since news from Tesla.

According to JPMorgan analysts, Bitcoin is much easier to lose value than gold, while many crypto enthusiasts are hoping Bitcoin can replace the precious metal as a store of value in investment portfolio.

In the opinion of this bank, unless the volatility of Bitcoin declines rapidly, its current price level is unsustainable.

Over the past few months, the Bitcoin price has broken many records and recently surpassed the threshold of $
Over the past few months, the Bitcoin price has broken many records and recently surpassed the threshold of $
In addition, the fact that many payment platforms accept Bitcoin also makes speculators more confident in the virtual currency’s prospect. Not long ago Square announced to buy some Bitcoins while Tesla billionaire Elon Musk also said he bought about $ 1.5 billion.

In addition, a series of central banks loosening money to stimulate the economy, such as lowering interest rates, buying back bonds, implementing quantitative easing (QE) … to combat The recession caused by the COVID-19 pandemic also made Bitcoin more attractive than other investment channels such as gold, stocks …

In addition, JPMorgan said that the limited supply of Bitcoin, which is based on the new amount of coins that the “miners” can produce, has led many investors to charge a premium for bringing in their Bitcoin to the market.

The bank added that cash flow from retail investors could also have boosted cash flows from institutional investors. It’s worth noting that while Bitcoin’s total market cap spiked by $ 700 billion, institutional investors poured just $ 11 billion into major trust funds and futures exchanges.

JPMorgan warned to maintain the current price, the cash flow from institutional investors will have to increase in case the cash flow from retail investment group cannot re-accelerate.

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