Bitcoin remains above $ 50,000 despite warnings
Bitcoin remains above $ 50,000 despite warnings

Bitcoin hit record highs the day after the cryptocurrency crossed the $ 50,000 mark, despite analysts warning that these prices would be sustainable due to increased volatility.

It is the largest digital currency in the world, with a market capitalization of more than 900 billion US dollars and a high of 51,175 dollars. At the same time, there are signs that the digital currency has been recognized by investors and major companies such as Tesla and Mastercard.

Despite the widespread adoption this year, some analysts have warned that Bitcoin is far from becoming a widely used payment method.

Mark Hefel, chief investment officer at UBS Wealth Management, said: “Investors are advised not to view this as a conventional cryptocurrency moment and to be careful before speculating because the cryptocurrency is not a currency.

We also don't think platform companies can jump into the cryptocurrency space with existing internal payment systems, he added.

Bitcoin has increased eightfold since March of last year, increasing its market value by more than $ 700 billion since September.

JPMorgan investment bank questioned the scale of the jump as the total influx from institutional investors was only $ 11 billion.

JPMorgan analysts said: The limited supply of Bitcoin's double coin has caused its holders to impose a premium on the bitcoin in the market, and the retail traffic could increase the level of institutional traffic.

"Over the past few months, we have been closely monitoring the apparent imbalance between supply and demand as interest rate institutions have grown significantly," said Brian Melville, Cumberland Chief Strategist, Chicago's DRW cryptocurrency unit.

JPMorgan analysts indicated last month that the prices of the major digital currencies could not hold up unless the volatile Bitcoin price fluctuated quickly.

They said: In terms of venture capital, the bitcoin price has more than doubled against gold at current market prices, and they found that the volatility of three-month digital currencies is 87% and 16%, respectively.

Additionally, US securities firm Wedbush said less than 5% of publicly traded companies will be on their way to investing in bitcoin over the next 12 to 18 months.

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