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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.
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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.
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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.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
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Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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- Ethena's USDe becomes fifth stablecoin to surpass $10 billion market cap in just 609 days, while Tether's dominance continues to slip.
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