At midday on the 21st of January, the price of Bitcoin declined significantly over the last 24 hours, leading to a loss of about $180 in market value. Bitcoin is currently down 8.70% to $31.928.92. According to data by CoinMarketCap, Bitcoin’s current market cap is about $594 billion.
Apart from Bitcoin, other assets like XRP, ETH, and Cardano have also declined.
In a report, Bloomberg revealed the details of a note by investment bank JPMorgan to clients. In the note, JPMorgan said Bitcoin is no market hedge. Additionally, strategists Federico Manicardi and John Normand referred to the king coin as the “least reliable hedge during periods of acute market stress.”
Speaking further, the strategists added:
“The mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage.”
While speaking at a Senate Finance Committee hearing, President Biden’s Treasury Secretary nominee Jallen Yallen said cryptocurrencies are a “particular concern.” She added that appropriate authorities should ensure that digital assets are not used in financing terrorists.
Despite BTC’s recent plunge and bearish comments from analysts, institutional investors are not backing out. According to a recent filing with the US Securities and Exchange Commission (SEC), investment firm BlackRock has allowed two of its largest funds to invest in Bitcoin.
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
