Bitcoin climbed to the $ 60,200 level early Friday morning. This is the highest point since March 14, that is, since after the day of the all-time high of about $ 62,000.
Over the past three weeks, Bitcoin has already made several attempts to break above a psychologically significant level, but they all ended in failure, and on March 25, the price of the cryptocurrency rolled back to local lows of about $ 50,000. The prospects for today’s attempt are also unclear – the market continues to fluctuate, increasing the volume of liquidations in the process …
The volume of liquidations in the cryptocurrency market per day is $ 800 million, and over the past four hours, liquidations were mainly carried out on short positions, while in general during the day – long ones.
Yesterday, the issuer of stablecoin Tether issued a one-time USD 1.2 billion. As explained by Tether CTO Paolo Ardoino, these tokens were created on the Tron blockchain and are intended to replenish the company’s reserves in order to meet customer requests in the next segment.
JPMorgan posted a note on Thursday in which it highlighted the following: The decline in bitcoin price volatility in recent weeks makes it more attractive to institutional investors looking for low correlation assets to diversify their portfolios. The acceleration in the spread of cryptocurrency among such investors “is likely to be due to recent changes in the correlation structure of bitcoin relative to traditional asset classes,” the bank explained.
From a risk management perspective, high volatility “acts as a deterrent to further institutional diffusion,” analysts said. Volatility has experienced a tangible rise since 2020, but is now normalizing, which will help revive the interest of professional investors in including cryptocurrency in portfolios, the bank said.
Analysts also note that since mid-October, asset outflows from gold-based funds have been $ 20 billion, while inflows to bitcoin funds have been $ 7 billion:
“Given how large the financial investment in gold is, any such outflow into an ‘alternative’ currency would imply a massive rise in bitcoin over the long term.”
As the next goal, the authors of the JPMorgan report call the $ 130,000 mark, for which the cryptocurrency rate must rise by another 120%. Interestingly, they recently set a target of $ 146,000, but adjusted it to reflect the pullback of the price of gold from the peak of $ 1,900 an ounce. It is noted that the forecast is based on expectations of convergence in the volatility of bitcoin and gold. There is still a big difference between the indicators: the realized volatility for three months is 86% and 16%, respectively.
“Mechanically, bitcoin should rise to $ 130,000 to match the total private sector investment in gold, ” writes JPMorgan, based on the current gold price of $ 1,700 an ounce.
The convergence of volatilities is unlikely to happen quickly and will likely take many years. This suggests that the above theoretical target for Bitcoin of $ 130,000 should be considered long term. “