LONDON, Feb 17 — Bitcoin’s charge to a record north of US$50,000 (RM202,025) 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 US$51,300 today after smashing the US$50,000 mark for the first time a day earlier, fuelled by signs it is winning acceptance among mainstream investors and companies.
Bitcoin’s three-month realised volatility, or actual price moves, is 87 per cent versus 16 per cent 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 US$900 billion from US$200 billion in September, the analysts said. The US$700 billion jump has come the back of a total flow of just US$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. — Reuters
