Bitcoin fears ‘bubble’, according to JP Morgan survey. A survey by JP Morgan’s Digital Research Unit found 58 per cent worried Bitcoin could balloon…
Cryptocurrencies and Yesil technologies are the most balloon-worried assets, according to a survey by JP Morgan’s digital research unit.
58 percent of respondents said they were worried about cryptocurrencies, while in second place, 29 percent came electric cars and Yesil technologies. JP Morgan’s survey included 3,400 people from 1,500 different institutions.
JP Morgan strategists have previously said in a note that it is not sustainable for the largest cryptocurrency to continue trading at current prices unless price fluctuations abate.
Strategists have emphasized that Bitcoin’s market value has increased by $ 700 billion in the last 5 months, but only $ 11 billion of it has come from institutional investors
“The gains since January have been more affected by speculative flows, ” said strategists, who noted that limited supply and individual demand could still push prices up.” he declared.
Bitcoin and Ethereum find support from bank comments
Bitcoin and Ethereum have risen in the last two days, receiving support from Citigroup’s Bitcoin report.
Bitcoin, which tested below $ 44k at the end of the week, reacted from the bottom this week and tested the level of $ 50k on the second trading day of the week.
Bitcoin and other cryptocurrencies not only attract the attention of mainstream financial institutions and Wall Street, but also attract the attention of regulatory agencies.
The report, released by Citigroup’s Global Perspectives & Solutions unit, said Bitcoin would either become the currency of choice for international trade or suffer “speculative devastation.”
Goldman also plans to reopen its trading unit for cryptocurrencies, a source with knowledge of the matter said. Goldman is expected to offer its Bitcoin futures contract to customers as early as mid-March.
“As long as more banks make constructive comments about Bitcoin, the speculative bubble will continue to grow, ” said Ed Moya, Senior Market Analyst at Oanda.” said.
Bitcoin is hovering around $ 48,796, up more than 10 per cent this week after falling as low as $ 43k over the weekend.
Ethereum, on the other hand, is at $ 1,559, up about 20 percent since Sunday, following Bitcoin.