- JPMC has a lot to say seeing Tesla invest a huge amount in buying BTC
- Due to JPMC’s bearish effect BTC was finding it very difficult to keep their price above their highest limit
- Tesla’s investment would bring BTC back in the game of reaching its all time highest price of $48,000
We can witness the increasing demand for buying BTC due to the influence by Tesla buying it. It was explained otherwise by JP Morgan. They seem to be totally denying the fact that Tesla investing funds in Bitcoin would actually emerge as an influence for the rest of the financial market.
Nikolaos Panigirtzoglou in Bloomberg’s report
In one of Bloomberg’s reports Nikolaos Panigirtzoglou, a strategist at JPMC, has written that not all corporate treasurers from a mainstream background will actually be following the footsteps of Tesla and investing their funds in the dynamic volatility of Bitcoin. He added this note on Wednesday.
The fortune 500, maker of the famous electric car Tesla, which is led by Elon Musk had recently disclosed that he had invested $1.5 billion to buy BTC on Monday. This had set new records above $48,000. With this investment by Elon Musk, the traders of cryptocurrencies are expecting more market corporates to invest in buying crypto. As per Tesla, bitcoin stands as a very reserve asset for the market.
JP Morgan’s view to the market
The strategist of JP Morgan has mentioned that investing in even a little of bitcoin would increase the levels of risks for a corporate portfolio. This would in turn influence other major companies from participating in the trade. JPMC added that the main reserves of the corporate portfolio’s lie on the money market, short-term bonds, and bank deposits which sums up to a volatility at an annual level. During a year this would range for around 1%. This very 1% would lead to an increased volatility of the portfolio to a high of 8%.
The strategist of JPMC also acknowledged the initiative of Tesla’s investment in BTC based on the effect that it would create in the BTC market. The announcement made by Elon Musk is going to change the entire trajectory of BTC for this week as the cash inflow would surely increase and BTC would surpass its highest mark of $40,000.
JPMC’s effect on the fall of BTC in the past month
Previous month, JPMC had caused a huge downfall for BTC by turning bearish. BTC faced a very hard time in keeping its price above $40,000. With Tesla entering a bull in the market of BTC, the price is going to soar unimaginably. Bitcoin was hovering between $30,000 and $40,000 for the past three weeks after setting a record on January 8, 2021. Once again BTC is back in the game with the help of Tesla.
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