Share this article
Bitcoin's Price Volatility May Hamper Its Progress Above $50K, JPMorgan Says
The bank's analysts pointed to gold's much lower volatility.
Updated Sep 14, 2021, 12:12 p.m. Published Feb 17, 2021, 2:13 p.m.
Bitcoin's price volatility needs to subside for the cryptocurrency to continue its stellar rally, according to analysts at investment banking giant JPMorgan.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In a note on Tuesday reported by Reuters, the analysts drew attention to bitcoin's high volatility relative to gold, the classic inflation hedge, as an obstacle to significant gains beyond current levels around $51,000.
"Bitcoin's three-month realized volatility, or actual price moves, is 87% versus 16% for gold – an asset, proponents say it could threaten," the investment bank said.
While bitcoin is increasingly described as "digital gold," skeptics believe the cryptocurrency is too volatile to find wide acceptance in institutional portfolios. Even so, several publicly listed companies such as Tesla and MicroStrategy have diversified cash holdings into bitcoin over recent months.
Also read: Bitcoin Hits New High Above $51K, Shrugging Off Rising Bond Yields
While crypto traders suggest other prominent companies are likely to follow suit, JPMorgan also said recently that bitcoin's turbulent price action may keep corporates from emulating Tesla's move – a sentiment echoed by Wedbush Securities on Tuesday.
Bitcoin reached a new lifetime high of $51,735 early on Wednesday, taking the year-to-date gain to over 75%, according to CoinDesk 20 data.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Standard Chartered Throws in the Towel on Bullish Bitcoin Forecast
Bowing to what he called a "cold breeze," but not a "crypto winter," Geoff Kendrick slashed his year-end outlook for BTC to $100,000 and doesn't expect $500,000 until 2030 versus 2028 previously.
What to know:
- Bitcoin’s roughly 36% slide from its Oct. 6 peak has been steep, but it remains within expected bounds, according to analyst Geoff Kendrick.
- Further corporate buying via bitcoin digital asset treasury firms is unlikely as their valuations no longer justify expansion.
- He slashed his year-end outlooks for bitcoin, now seeing $500,000 as being hit in 2030 versus 2028 previously.
Top Stories
