"While I'm optimistic about the long-term prospects for Bitcoin, four years ago we had a very similar situation with bitcoin breaking new ground, but just two weeks later its price plummeted by more than a third".
Major cryptocurrency exchanges such as Binance and Coinbase struggled to cope with a rush of demand on Tuesday as investors sought to purchase digital assets or sell their cryptocurrency holdings following the rally. Major U.S. insurer MassMutual and others are devoting a portion of assets to bitcoin, while many hedge funds are considering expanded positions.
The investment bank considers that it has been absolutely remarkable the way in which Bitocin expanded this year.
Total cryptocurrency market capitalization exceeded the $600 billion mark this week, dragged by an incredible bull run from Bitcoin (BTC). Smartphone apps that conduct transactions in bitcoin are gaining wider use, helping to fuel a new round of individual investors entering the market.
If the digital currency continues expanding and attracting a large number of investors.
Microsoft designing its own chips for servers, Surface PCs
In addition, the company is thinking about using proprietary processors in devices of the Surface family. Another advantage of the M1 chip is that its integration with Apple's software is almost ideal .
According to data from Coin Market Cap, the value of Bitcoin on October 16 was close to $ 11,500.
As JPMorgan explained, the price of the largest digital asset will not get there tomorrow.
Last week, fund manager Ruffer Investment Management moved around $675 million of its clients' money into Bitcoin, according to a report from Reuters.
Bitcoin continued its price rally, rising to US$23,000 this week, a record high in the cryptocurrency's 12-year history. In December 2017, just after the cryptocurrency reached $19,000, it fell to the $3,000 range over the following year.
"Volumes last week were 70% above the year daily average-suggesting greater participation in this rally than has historically been the case", said James Butterfill, investment strategist at CoinShares. If institutional investors continue entering the market, JPMorgan's prediction might not be so insane after all. After the unit surpassed US$1,000 for the first time in 2013, it increasingly began to attract the attention of financial institutions and has experienced wild price swings.