Bitcoin lacks of new buyers to sustain its current prices, which makes its position 'unsustainable,' according to a new note shared by JPMorgan. The bank says the cryptocurrency's volatility should subside in order to stay above the 48,000 mark.
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"What has been remarkable over the past five months is that the $700bn increase in the market cap of bitcoin has taken place with relatively little institutional flows," the bank wrote.
The US bank cautions the movements since January appear to have been more influenced "by speculative flows," rather than by smart money inflow. JPMorgan assumes that the recent rally which pumped bitcoin beyond the 50,000 mark is driven by retail inflows.
iHodl previously reported that JPMorgan is ready to support cryptocurrencies, such as bitcoin (EXANTE: Bitcoin), only if there is enough demand from clients. JPMorgan's Co-President and Chief Operating Officer of JPMorgan, Daniel Pinto, said the bank might get involved into the cryptocurrency space if over time "an asset class develops that is going to be used by different asset managers and investors."
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