JPMorgan Releases Note on Bitcoin, BTC Stays above $1 Trillion Market Cap

“Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term futures markets experienced a steep liquidation in the last few days,” JPMorgan strategist Nikolaos Panigirtzoglou mentioned in a research note on Tuesday. The bank added that momentum signals for Bitcoin will naturally decay from the current levels.

According to a report published by Bloomberg, JPMorgan has raised concerns about the recent dip in Bitcoin and warned investors about a surge in BTC futures markets liquidation. The world’s largest digital currency stayed above $54,000, which is up approximately 1% in the last 24 hours.

The latest comments from the bank came as a surprise after JPMorgan gave a long-term price target of $130,000 per Bitcoin in an earlier note and mentioned that Bitcoin’s declining Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term is attracting institutional investors.

In Tuesday’s note, the investment bank highlighted a sharp decrease in institutional flows into Bitcoin-related investment products. “Over the past few days, Bitcoin futures markets experienced a steep liquidation in a similar fashion to the middle of last February, middle of last January, or the end of last November. Momentum signals will naturally decay from here for several months, given their still-elevated level. Whether we see a repeat of those previous episodes in the current conjuncture remains to be seen but flows into BTC funds appear weak,” note states.

$1 Trillion Bitcoin Support

BTC’s $1 trillion market cap acted as strong support for the world’s largest digital currency in the last few weeks. Bitcoin’s on-chain activity has increased significantly above the $1 trillion market cap.

“This revisit of lower price has created incredibly strong price validation for Bitcoin about $1 trillion cap. 14% of the supply last moved above the $1 trillion market cap. This is a key line in BTC's price discovery, an area of immense support,” BTC analyst, Willy Woo mentioned on Twitter.

Currently, Bitcoin has a market cap of $1.03 trillion. Despite the recent dip, the cryptocurrency is up by nearly 90% in the last 15 weeks. The overall market dominance of BTC now stands at around 50%.