Ethereum extended its rise and traded to a new all-time high at $1,830 against the US Dollar. ETH price is trading in a positive zone and it looks set for more gains towards $1,900.

After spiking above the $1,800 level, Ethereum started a short-term downside correction (similar to bitcoin). ETH corrected below $1,760, but it remained stable above $1,720.

As a result, there was a fresh increase above the $1,800 level. Ether price even traded to a new all-time high near $1,830 and settled well above the 100 hourly simple moving average. It is now showing positive signs above the $1,800 level.

An initial support is near the $1,790 level. It is close to the 50% Fib retracement level of the recent wave from the $1,755 swing low to $1,830 high. There is also a major ascending channel forming with support near $1,760 on the hourly chart of ETH/USD.

An intermediate support is near the $1,770 level. It coincides with the 76.4% Fib retracement level of the recent wave from the $1,755 swing low to $1,830 high.

On the upside, the price is facing resistance near the $1,830 and $1,850 levels. A proper break above $1,850 might start a steady increase above $1,880. In the stated case, the price may even break the $1,900 level and continue higher towards the $1,950 level.

If Ethereum fails to clear the $1,830 and $1,850 resistance levels, it could correct lower. On the downside, the first major support is near the $1,770 level.

The next major support is near the channel support at $1,760. Any more losses may possibly lead the price towards the $1,700 level and the 100 hourly simple moving average.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is still well above the 50 level.

Major Support Level – $1,760

Major Resistance Level – $1,850

Bitcoin price remained in a bullish zone above the $45,000 support against the US Dollar. BTC is eyeing a fresh rally above the $48,000 and $50,000 resistance levels in the near term.

This past week, bitcoin price made an attempt to test the $50,000 level against the US Dollar. The BTC/USD pair broke the $48,000 resistance, but there was a lack in momentum.

A new all-time high was formed near $48,700 before the price started a downside correction. There was a break below the $47,000 support. The price traded below the 23.6% Fib retracement level of the upward move from the $43,773 swing low to $48,700 high.

Bitcoin price is now trading nicely above the $45,000 level and the 100 simple moving average (4-hours). On the downside, there is a decent support forming near the $46,000 level.

There is also a major bullish trend line forming with support near $46,000 on the 4-hours chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $43,773 swing low to $48,700 high.

On the upside, the $48,000 and $48,500 levels are important hurdles. A clear break above the $48,000 level is likely to increase the chances of a surge above the $50,000 level in the coming sessions.

If bitcoin struggles to clear the $48,000 resistance level, there are chances of a downside correction. The first major support is near the trend line and $46,000.

The next major support is near the $45,000 level. If there is a clear break and close below the $45,000 support, the price could decline 5%-10%. The next major support on the downside is near the $41,000 level.

Technical indicators

4 hours MACD – The MACD for BTC/USD is likely to gain strength in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.

Major Support Level – $46,000

Major Resistance Level – $48,000

Ether is stagnating against Bitcoin despite BTC's strong rally after BNY Mellon embraces digital assets.

The price of Ether (ETH), the native cryptocurrency of Ethereum, has been stagnating against Bitcoin in recent days after a strong few weeks against BTC.

In the past few weeks, ETH and BTC have shown some inverse correlation as ETH rallied strongly when BTC consolidated, and vice versa.

ETH/BTC 15-minute price chart (Binance). Source: TradingView.com

In the last several hours, Bitcoin has seen a decent rally after BNY Mellon said it would begin offering Bitcoin services later this year.

“BNY Mellon is proud to be the first global bank to announce plans to provide an integrated service for digital assets. Growing client demand for digital assets, maturity of advanced solutions, and improving regulatory clarity present a tremendous opportunity for us to extend our current service offerings to this emerging field.”

The announcement almost immediately uplifted the momentum of Bitcoin, causing it to rally from around $45,500 to around $47,400. It eventually reached an all-time high hours after, rising to above $48,500.

During the same period, the ETH/BTC pair pulled back despite their respective USD remaining in relative lockstep. But in recent weeks, ETH typically rallied harder than Bitcoin during uptrends, alongside both large-cap altcoins and DeFi tokens.

BTC/USD vs. ETH/USD (orange) 1-hour candle chart (Bitstamp). Source: Tradingview

But, in the last 24 hours as Bitcoin gained significant short-term momentum, ETH has been lagging behind BTC.

Willy Woo, a popular on-chain analyst, said that historically, Bitcoin is a better “multi-cycle HODL” while ETH is a “better mid-macro” swing trade.

This trend is shown during short-term cycles as well, as Bitcoin tends to increase steadily most of the time while ETH either accelerates against BTC or stagnates. He said:

“Risk Adjusted Returns over a 4 year hold period. -> Winner: Tied. See how short ETH's backtrace is? That shows just how new and untested it is, only 1 macro cycle of data so far. Gold also shown (6000 yrs of backtrace, a supply inflation of 100% per 40 yrs, not digital). Personal opinion from this data: - BTC is a better multi-cycle HODL. - ETH is a better mid-macro swing trade.”

In the near term, traders and analysts generally remain optimistic around the short-term cycle of ETH.

ETH, BTC year-to-date performance. Source: Digital Assets Data

For instance, there has been no sell-the-news reaction to the CME ETH futures listing, which is a positive factor that may boost the chances of ETH’s rally continuing.

Additionally, on the first day of trading, the CME ETH futures market traded over $30 million in volume, which is relatively high for the first day of trading. Thus, if the institutional demand for ETH rises similar to Bitcoin in late 2020, ETH could see a broader rally in the weeks to come.

A trader known as “Pentoshi” said that altcoins and ETH should have much stronger momentum, suggesting that they are currently stagnating. He said:

“Alt market has me feeling a little uncertain atm $ETH and $LINK should have way more momentum, DeFi perp showing indecision Total potentially finding some resistance here at 500B Something to watch, and plan for. NOT FEAR. Any correction is opportunity. View it that way.”

For now, $1,800 remains the key level to break for ETH to regain momentum against both Bitcoin and the U.S. dollar in the foreseeable future.

Article source

The crypto industry was seen trying to recover from its latest setback. Cardano [ADA] as well as Polkadot [DOT] seemed to be least affected by the latest crash. Almost all the assets in the crypto industry were seen bleeding. Bitcoin, during the time of writing, was seen swinging through the $49K to $50K zone. Polkadot, unlike all the other assets, hadn’t recorded major losses. XRP had, however, slumped down to the seventh position and retained its price above $0.45 despite the recent crash. Additionally, the overall crypto market cap was noted at $1.51 trillion, during press time.

Cardano, at the time of writing, was seen trading for $0.987, with a 3.25% drop in the last 24-hours. The altcoin had surged to a high of $1.02, just yesterday while all the other assets were seen slumping. These numbers affirmed that ADA was trying to make its way to its previous all-time high of $1.33, which it achieved about three years ago.

The one-hour price chart of ADA announced that the bulls were hibernating in its market. The Parabolic SAR indicator had formed a line of support below the candlesticks which diminished the chances of a downward breakout. The MACD indicator retained the bullish crossover that it had formed yesterday. The Relative Strength Index indicator was exhibiting a neutral notion in the market with no major buying or selling activity.

The altcoin’s one-day price chart partially mirrored the short-term price chart of ADA. The Awesome Oscillator indicator, however, was delivering a bearish momentum with the formation of red closing bars. The Chaikin Money Flow index was sky high as it was over zero and has been around the same region for a while now. The Money Flow Index indciator announced that a buyers’ sentiment was still intact in the ADA market.

Bitcoin surged above the $52,000 level on Wednesday for the first time.

The red-hot cryptocurrency rose to a record high of $52,340 at around 2:45 p.m. ET, according to data from Coin Metrics.

Bitcoin was created in 2009, not long after the global financial crisis. It has gone from a protest against the banking system to something of a "digital gold" that is beginning to catch on with mainstream investors.

Companies like PayPal and Mastercard have made significant moves to support cryptocurrencies. And Tesla last week said it had invested $1.5 billion into bitcoin and planned to accept the digital currency as payment for its products.

"We believe the story and theme here is much larger than just investing in Bitcoin and predicting its future price, but rather around the potential ramifications that crypto, blockchain, and bitcoin could have across the technology and corporate world for the next decade," Dan Ives, Wedbush Securities' managing director, said in a note Wednesday.

"From Paypal, and Square, to the likes of Nvidia, Tesla, IBM, Visa, Mastercard and many other companies across verticals, we believe the trend of transactions, bitcoin investments, and blockchain driven initiatives could surge over the coming years as this bitcoin mania is not a fad in our opinion, but rather the start of a new age on the digital currency front."

Bitcoin's latest rally has reminded many investors of its massive ascent to nearly $20,000 in 2017, which was followed by a plunge the following year that saw the digital coin lose 80% of its value.

But the world's most valuable cryptocurrency has since staged a fierce comeback, more than quadrupling in 2020 and gaining over 70% this year.

Strategists at JPMorgan warned in a note Tuesday that unless bitcoin's volatility starts to ebb, its current price "looks unsustainable." Bitcoin and other cryptocurrencies have gained a reputation for their extreme price swings.

Wedbush Securities, a prominent wealth manager based in Los Angeles, believes Bitcoin (BTC) is becoming a permanent fixture in the global financial marketplace.

Managing director Dan Ives informed clients on Wednesday that corporate adoption of Bitcoin represents a much bigger story than merely predicting the digital currency’s future price.

“We believe the story and theme here is much larger than just investing in Bitcoin and predicting its future price, but rather around the potential ramifications that crypto, blockchain, and bitcoin could have across the technology and corporate world for the next decade,” he said in a note that was obtained by CNBC.

He also explained why so-called Bitcoin mania is not a fad:

Bitcoin’s adoption story accelerated last year after major institutions and corporations sought exposure to the digital asset. That trend appears to be intensifying after Tesla confirmed it had allocated $1.5 billion of its cash reserves to BTC.

Although Bitcoin has earned a reputation for being extremely volatile, its price swings appear to have ebbed from the previous bull cycle that peaked in 2017. As Cointelegraph reported Wednesday, Bitcoin’s 60-day volatility is significantly lower today than it was when the cryptocurrency topped out near $20,000 in December 2017.

BTC price peaked at $51,721 on Wednesday, a new all-time high, according to TradingView data.

Over the past couple of days, the cryptocurrency market has seen a divisive shift in the sentiments with a lot of users jumping on the digital asset bandwagon. It is not just Bitcoin that was on a bull tear as altcoins such as Ethereum, XRP and Tron also enjoyed their time in the sun. 

Justin Sun’s Tron, having been in the shadows for some time, has begun to wave in the digital asset industry. The price of Tron was not the only factor that emerged, as a number of personalities also started their buzz around the popular cryptocurrency.

The new year began with a number of positive updates from across the industry, with major players doubling down the wave. Justin Sun had also recently talked to Bloomberg about the age of memecoins and how it could act as a stepping stone to further developments.Tron also changed their energy and bandwidth spectrum from 40SUN to 140SUN. This came after the Tron Foundation approved the No.51 request to vote for the blockchain.

At press time, Tron traded for $0.056 after a 62.93 per cent increase in value over the previous week. The 20th-ranked cryptocurrency held a market cap of $3.9 billion and a 24-hour trading volume of $4.47 billion. Cryptocurrency fans expect BSV to overtake in terms of a market cap of $4.13 billion.

The hype around Tron has reached such a crescendo that even mainstream stars like Lindsey Lohan have begun to talk about it. On February 11, Lindsey Lohan tweeted about Tron and its features, betting on a bright future. The Hollywood star said the following:

“Exploring #DeFi and already liking $JST, $SUN on $TRX. Super fast and 0 fee. Good job @justinsuntron”

Tron has positioned itself as a competitor of Ethereum with the sole aim of improving the trading ecosystem. The first major resistance level of Tron broke at $0.052 at an intraday low of $0.04112. Right now, analysts expect Tron to test the resistance at $0.055 before any price drawdown occurs. Only time will tell if the price swing is still going the bull’s way.

The world’s most popular cryptocurrency Bitcoin is currently struggling to maintain above the $10000 mark. On a couple of occasions, it just touched $10000 but did not dip below the mark. Currently, Bitcoin is priced at $10,340 at press time with a loss of 0.88 percent. Despite the downtrend of the Bitcoin, the bitcoin community is still bullish for the next 12 months. Moreover, nearly 90 percent of the people who participated in the poll by anonymous crypto analysts PlanB, are bullish on the crypto space. As Coinpedia reported earlier that Whales and investors are trying hard to keep Bitcoin Above $10000, according to popular on-chain data analytics platform Santiment, the bitcoin whales are increasing their holdings. The number of wallets holding 10,000 to 100,000 Bitcoins has increased from 104 on September 17, 2020, to 107 on September 24, 2020. Therefore, with the increase in the volume of the bitcoin whales, an immense buying pressure can be anticipated. As a result, the Bitcoin price is bound for an incredible move upwards in the coming days. A normal routine of the crypto whales includes trading BTC for other assets. But a report published by another on-chain data provider CryptoQuant shows that the active users in all exchanges who deposit BTC hit the 3-year low. The lowered inflow of the assets on the world’s largest exchanges indicated the ‘holding’ sentiment of the whales. Most of the bitcoins remain unspent with the whales or not have been moved for trade. Whales prefer to hold Bitcoins rather than trading for any other assets. Summarizing the whole story, Bitcoin currently is struggling to rebound to the highest level. The bitcoin whales who hold more than 10000 bitcoins have surged in the week’s time and moreover, they prefer to stack up the coins.  TagsBitcoin News Bitcoin Price Bitcoin Trading Join Trade Experts Chats On

Ned Segal – the CFO of Twitter, the second-largest social media platform in the world – says that the company is potentially looking into adding bitcoin to its official finance roster, thereby allowing payments to be made in the world’s number one digital currency by market cap.

Segal says that nothing is set in stone yet, though if Twitter were to make this decision in the coming weeks or months, it shouldn’t be a surprise to digital traders. After all, the company is owned and operated by Jack Dorsey, which has been a large proponent of bitcoin over the past several years.

Dorsey’s other company Square has already given people the chance to purchase and trade digital assets and has seen hundreds of millions of dollars every year in bitcoin-related revenue. In addition, the company was one of the first institutional players to emerge and provide public support for the asset, buying roughly $50 million worth in late 2020.

Segal says that the Twitter staff is looking into the possibilities of associating itself with bitcoin. The company is in no hurry to decide and wants to be right on the mark before taking any major steps. In a statement, he claims:

We’ve done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in bitcoin, how we might pay a vendor if they asked to be paid in bitcoin, and whether we need to have bitcoin on our balance sheets should that happen. We want to be thoughtful about it over time, but we haven’t made any changes yet.

Twitter appears to be following in the footsteps of Tesla, the electric car company owned and operated by South African entrepreneur Elon Musk. Recently, the company purchased as much as $1.5 billion worth of BTC and claimed that it was now looking into allowing its customers to pay for items and services with the digital asset.

Bitcoin initially began as a payment currency and was designed as a means of shutting out fiat altogether. However, its vulnerability to price swings and fluctuations has ultimately gotten in the way. At the time of writing, the world’s primary digital currency is still very much viewed as a speculative asset, though it has been slowly garnering a reputation as a hedge tool or store of wealth following the introduction of the coronavirus pandemic given recent boosts in inflation.

Either way, while the idea of incorporating BTC as a payment currency with a major company is no doubt intriguing, it may be easier said than done.

In the early hours of Feb. 11 Yearn.finance (YFI) experienced a high volume spike which pushed the price to a new all-time high at $45,900. 

Data from Cointelegraph Markets and TradingView shows that YFI hit a swing low at $33,638 on Feb.10 before experiencing a 26% breakout of 26%.

The move appeared to be motivated by a corporate registration filing with the State of Delaware which showed Grayscale Investments registering the LLC for a Yearn finance trust similar to its Bitcoin and Ethereum products.

A range of new partnership announcements and further expansion of its vast DeFi ecosystem are also factors that may have catalyzed YFI’s surge to a new high.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for YFI on Feb.7, prior to the recent price rise.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

As can be seen on the VORTECS™ chart above, after seeing its price decline in the early hours on Feb.10 the YFI community had a significant announcement, and prior to this announcement the VORTECS ™ score registered 48, then rose to 66 as YFI price broke out from $35,000 to $42,500 in the hours that followed.

In an effort to help the YFI protocol become the most expansive decentralized finance ecosystem, Yearn also announced a partnership with Badger DAO, whose purpose is to build the necessary products and infrastructure that will help accelerate Bitcoin as collateral across other blockchains.

Together, Yearn.finance and BadgerDAO hope to build the “best-in-class Bitcoin vaults” for the DeFi space that will allow BTC holders to fully integrate and participate in the growing DeFi movement.

The partnership will also help ensure sustainable yields for Badger vaults while allowing Yearn users to earn a healthier compensation, amounting to a win-win for both communities and the DeFi ecosystem as a whole.

Yearn price received further attention on Feb.11 when it was revealed that Grayscale Investments registered an LLC for a prospective Yearn Finance (YFI) Trust, indicating that mainstream financial investors may soon have access to the governance token.

Institutional investors are thought to be the primary force propelling the current crypto bull market and announcements that signal their investment into particular assets like YFI tend to generate a temporary pump in price and sentiment.

What is yet to be determined is whether today’s YFI rally was a buy the rumor, sell the news event.

Up and up Bitcoin’s price goes, rising higher than even the tallest clouds, headed straight “to da moon."

Today, Bitcoin peaked at $57,000, its highest ever price.

Why the rise? The reasons are likely manifold and various; Bitcoin’s bull run is now in full swing.

One obvious candidate is US business intelligence firm MicroStrategy, which yesterday announced that it will sell off $1 billion of debt to buy more Bitcoin. MicroStrategy has done this before: it sold $400 million in convertible senior notes in December, which it added to a pool of money used to buy billions of the coin.

The new all-time high comes as the crypto benefits from a recent wave of "mainstreaming".

Last week, BNY Mellon announced that it will invest in crypto for its clients. Industry leaders told Decrypt last week said that the move will change how asset managers view Bitcoin, pushing its price even higher in line with the long-term price predictions by JPMorgan, Guggenheim and others.

The continuous price surge of the last few months has now pushed Bitcoin’s market cap north of $1 trillion. In crypto, the market cap refers to the total number of coins in circulation multiplied by the current market price of each coin. The total market cap of the entire cryptocurrency market first reached $1 trillion in early January, as Decrypt reported. Now, the entire market cap of crypto is $1.7 trillion.

Altcoins—coins that are alternatives to Bitcoin—have also performed swimmingly this week.

The price of Ethereum, the largest alternative cryptocurrency to Bitcoin, today hit $2,010, a jump of 3.81% from yesterday’s $1,933. Ethereum’s weekly price change is an increase of 9.03%.

Binance Coin , or BNB, jumped this week to become the third-largest coin by market cap. Its price increased by 15.97% to $298.72 over the past 24 hours. Its weekly price increase is 124.58%—the highest among top cryptocurrencies. Yesterday, BNB hit an all-time high of $399.

Polkadot , the fourth-largest cryptocurrency by market cap, increased 17.15% in the last 24 hours and 29% in the past week. Its current price is $38.12. And Cardano (ADA), the sixth-largest, jumped by 15.53% in the past day and by 14.70% in the past week to today’s price of $1.07.

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

Top mining executive has suggested that given the huge volatility swings in Cryptocurrencies, holders may want to consider owning some gold as a hedge. 

In an interview with Bloomberg, Newcrest Mining Ltd. Chief Executive Officer, Sandeep Biswas said: 

“If you’re into cryptos, you want to consider having some gold,” 

He also added that gold: 

“may act as a bit of a hedge against the volatility of cryptos,” 

Bitcoin made more major moves over the last couple of weeks, and particularly after it was reported that Elon Musk’s Tesla had bought $1.5 billion of the asset. 

Some analysts are commenting that the sharp rise in cryptocurrencies is leading to an erosion of the gold market cap, and that investors are starting to move out of the age-old haven in favour of the new, and perceived greater gains of Bitcoin. 

Biswas argues that whilst both gold and Bitcoin are distinct from each other, the stability provided by gold would be of benefit to Bitcoin holders in order to hedge the volatility that this asset brings. 

“Gold is a different class of investment,” Biswas said. “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can make it into jewelry, whatever you want.” 

Goldman Sachs has also stated that the surge in popularity of Bitcoin won’t harm gold. The bank said back in December that it believed the 2 assets can “coexist”. It recognised that Bitcoin is soaking up some of the demand that would traditionally go to gold but also remarked that gold will endure. 

“Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that Bitcoin is replacing gold as the inflation hedge of choice,” the bank said in a note. While there’s been some substitution, “we do not see Bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort.” 

The bank also added that institutions and high wealth individuals were avoiding cryptocurrencies given their “transparency issues”.  

It could well be argued that cryptocurrencies run on Blockchain, and that transparency is one of the fundamental features of this technology. Janet Yellen recently came out with statements asserting similar claims. 

What can’t be argued is that gold certainly will endure as a store of value, just as it has over the centuries. Bitcoin and cryptocurrencies are infants in comparison, and it remains to be seen if this particular asset class will stand the test of time. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

Article source

Bitcoin surged above the $51,000 level on Wednesday for the first time.

The red-hot cryptocurrency hit a fresh record price of $51,715 at around 4:50 a.m. ET, according to data from Coin Metrics. It was later trading 5% higher at $51,024.

Bitcoin was created in 2009, not long after the global financial crisis. It has gone from a protest against the banking system to something of a “digital gold” that is beginning to catch on with mainstream investors.

On Wall Street, major investment banks appear to be warming to bitcoin. JPMorgan said recently it’s looking seriously at the asset class, and Goldman Sachs has also shown an interest in crypto. A division of Morgan Stanley is reportedly considering adding bitcoin to its list of possible bets.

Companies like PayPal and Mastercard have made significant moves to support cryptocurrencies. And Tesla last week said it had invested $1.5 billion into bitcoin and planned to accept the digital currency as payment for its products.

“We believe the story and theme here is much larger than just investing in Bitcoin and predicting its future price, but rather around the potential ramifications that crypto, blockchain, and bitcoin could have across the technology and corporate world for the next decade,” Dan Ives, Wedbush Securities’ managing director, said in a note Wednesday.

“From Paypal, and Square, to the likes of Nvidia, Tesla, IBM, Visa, Mastercard and many other companies across verticals, we believe the trend of transactions, bitcoin investments, and blockchain driven initiatives could surge over the coming years as this bitcoin mania is not a fad in our opinion, but rather the start of a new age on the digital currency front.”

Bitcoin’s latest rally has reminded many investors of its massive ascent to nearly $20,000 in 2017, which was followed by a plunge the following year that saw the digital coin lose 80% of its value.

But the world’s most valuable cryptocurrency has since staged a fierce comeback, more than quadrupling in 2020 and gaining over 70% this year.

Bitcoin’s proponents say it’s due to increased demand from institutional investors as well as corporate buying of the digital currency from the likes of Tesla, Square and MicroStrategy. Skeptics, on the other hand, worry bitcoin may be the biggest market bubble in financial markets.

Strategists at JPMorgan warned in a note Tuesday that unless bitcoin’s volatility starts to ebb, its current price “looks unsustainable.” Bitcoin and other cryptocurrencies have gained a reputation for their extreme price swings.

Source: CNBC

The electric car company owned and operated by South African entrepreneur Elon Musk recently made a real dent in the crypto space when it decided to purchase roughly $1.5 billion worth of the world’s number one digital currency by market cap. The trading world saw this as a huge step forward, and the news got every investor huffing and puffing. The currency rose to about $47,000 per unit, and things were looking better than ever for BTC.

However, JPMorgan is expressing doubt that Tesla’s actions will lead to a string of similar buys from other companies. The fact is that while bitcoin has been on a bull run of sorts over the past year, the currency is still quite vulnerable to price swings and fluctuations, and this sends ripples of fear down many company’s spines.

In the document, analysts with the financial giant explain:

The main issue with the idea that mainstream corporate treasures will follow the example of Tesla is the volatility of bitcoin.

Already, we are beginning to see shades of truth in these statements given that companies such as General Motors – another car company that serves as one of Tesla’s top competitors – says that it has virtually no interest in engaging in bitcoin trades or investments as of late. However, the company has made it clear that it will monitor customer interest and consider potentially allowing bitcoin and crypto payments for goods and services in the coming future.

Still, the idea that a billion-dollar company such as GM remains so resistant to allocating some of its reserves in bitcoin suggests that institutions are still somewhat afraid when it comes to accepting BTC as a mainstream financial tool.

While JPMorgan appears to be spreading gloom and doom regarding the future of institutional bitcoin investments, it does acknowledge that Tesla’s move is likely to strengthen the currency’s appeal for the time being, and perhaps the asset will slowly begin to gain legitimacy and mainstream acceptance over time. The document mentions:

Irrespective of how many corporates eventually follow Tesla’s example, there is no doubt that this week’s announcement changed abruptly the near-term trajectory for bitcoin by bolstering speculative institutional flows via bitcoin futures as well as retail flows.

No doubt JPMorgan has heavy financial knowledge, though it’s hard not to take everything it says with a grain of salt. After all, the company recently issued a report claiming that BTC wasn’t likely to hit $40,000 again at any point, though the currency ultimately proved the firm wrong as it is now trading for $44K.

Top mining executive has suggested that given the huge volatility swings in Cryptocurrencies, holders may want to consider owning some gold as a hedge.  

In an  interview  with Bloomberg, Newcrest Mining Ltd. Chief Executive Officer, Sandeep Biswas said:  

“If you’re into cryptos, you want to consider having some gold,”  

He also added that gold:  

“may act as a bit of a hedge against the volatility of cryptos,”  

Bitcoin made more major moves over the last couple of weeks, and particularly after it was reported that Elon Musk’s Tesla had bought $1.5 billion of the asset.  

Some analysts are commenting that the sharp rise in cryptocurrencies is leading to an erosion of the gold market cap, and that investors are starting to move out of the age-old haven in favour of the new, and perceived greater gains of Bitcoin.  

Biswas argues that whilst both gold and Bitcoin are distinct from each other, the stability provided by gold would be of benefit to Bitcoin holders in order to hedge the  volatility  that this asset brings.  

“Gold is a different class of investment,”  Biswas said.  “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can make it into jewelry, whatever you want.”  

Goldman Sachs has also  stated  that the surge in popularity of Bitcoin won’t harm gold. The bank said back in December that it believed the 2 assets can “coexist”. It recognised that Bitcoin is soaking up some of the demand that would traditionally go to gold but also remarked that gold will endure.  

“Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that Bitcoin is replacing gold as the inflation hedge of choice,” the bank said in a note. While there’s been some substitution, “we do not see Bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort.”  

The bank also added that institutions and high wealth individuals were avoiding cryptocurrencies given their “transparency issues”.   

It could well be argued that cryptocurrencies run on Blockchain, and that transparency is one of the fundamental features of this technology. Janet Yellen recently came out with statements asserting similar claims.  

What can’t be argued is that gold certainly will endure as a store of value, just as it has over the centuries. Bitcoin and cryptocurrencies are infants in comparison, and it remains to be seen if this particular asset class will stand the test of time.  

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.