Bitcoin’s charge to a record north of $50,000 isn’t sustainable unless the cryptocurrency’s price swings cool down quickly, JPMorgan analysts said in a note.
The world’s biggest digital currency hit a record of $51,300 on Wednesday after smashing the $50,000 mark for the first time a day earlier, fueled by signs it is winning acceptance among mainstream investors andcompanies.
For all the latest headlines follow our Google News channel online or via the app
Bitcoin’s three-month realized volatility, or actual price moves, is 87 percent versus 16 percent for gold - an asset proponents say it could threaten, the US investment bank said in a note published on Tuesday.
The value of all bitcoin in circulation has swollen to $900 billion from $200 billion in September, the analysts said. The $700 billion jump has come the back of a total flow of just $11 billion from institutional investors into major trusts and futures markets.
Bitcoin’s limited supply - based on “miners” producing a set number of new coins -- has led to a holders charging a premium on bitcoin coming to market, JPMorgan said. Retail flows may have also magnified institutional flows, it added.
Twitter chief partners with and rap mogul Jay-Z to back Bitcoin
Bitcoin surges to all-time high after BNY Mellon launches new Digital Assets division
Tesla’s Bitcoin bet won’t be followed by others, JPMorgan says
- Tesla’s Bitcoin bet won’t be followed by others, JPMorgan says
- Bitcoin surges to all-time high after BNY Mellon launches new Digital Assets division
- Twitter chief partners with and rap mogul Jay-Z to back Bitcoin
- Tesla accepting bitcoins as payment will help normalize cryptocurrency
- Novogratz sees Bitcoin at $100,000 with ‘every’ company adopting