- The JPMorgan strategists, led by Nikolaos Panigirtzoglou, recently announced that the cryptocurrency’s rally that resulted in surpassing $ 50,000 “seems unsustainable” as long as the Bitcoin fluctuation does not suddenly decline.
The JPMorgan strategists, led by Nikolaos Panigirtzoglou, recently announced that the cryptocurrency’s rally that resulted in surpassing $ 50,000 “seems unsustainable” as long as the Bitcoin fluctuation does not suddenly decline.
Institutional investments remained well below the total volume increase
In the article, analysts particularly drew attention to the $ 48,000 level. After crossing this level, the price of the flagship cryptocurrency has caught resistance at $ 50,000 and its all-time high rises above $ 51,500.
Strategists wrote that although institutional investor inflows are estimated at just around $ 11 billion, Bitcoin’s market capitalization has increased by about $ 700 billion since last September.
Noting the rise of market capitalization, strategists noted that since the beginning of this year the movements “appear to be more influenced by speculative flows”, adding:
This also indicates that some rebound in real money flows will be needed to maintain current prices if retail flow does not accelerate again.
Similarity and volatility with gold stand out
Retail inflows have been “particularly strong since January, and there is little doubt that this retail move is a driving force not only for stocks but also for Bitcoin,” JPMorgan analysts report. said.
Strategists also compared BTC’s volatility with that of gold. Experts said consumers are interested in Bitcoin’s largest fund, Grayscale Bitcoin Trust (GBTC), which has on average 6.2 times more venture capital than gold’s largest exchange-traded fund, compared to managed assets.
CME Ethereum Futures similar to those of BTC
According to Investopedia, the concept of Venture Capital refers to funds allocated to speculative activity and used for “high risk, high return investments”. The future of venture capital investments tends to be ‘inherently uncertain’, but when an investment is successful, returns can be well above average.
Strategists awaiting the launch of ETH futures by CME Group said the initial slow pace was similar to what was initially seen in CME’s Bitcoin futures contracts. In their view, it won’t be long before ETH futures gain interest as “investor interest in cryptocurrencies has had a few years to mature”.