Bitcoin has been doing extremely well as of late, but that’s not stopping financial giants from viewing it in a bad light. One of those doubters is JPMorgan, who recently claimed in a new report that bitcoin was never going to hit $40,000 again. The world’s number one digital currency by market cap ultimately proved the company wrong and is trading for more than $52,000 per unit at the time of writing.
JPMorgan Thinks Things Will Go Wrong with BTC
Now, JPMorgan has issued a statement claiming that should the currency continue to rally as it is, things will get bad for traders. The firm is announcing that the amount of risk associated with bitcoin is set to increase to unprecedented levels granted things don’t calm down a bit in the coming weeks.
Interestingly, this is the opposite sentiment of figures such as Anthony Pompliano, a co-founder and partner at Morgan Creek Digital. In a recent interview, he claimed that bitcoin could easily hit $500,000 per unit by the end of 2029, and that he fully believes the asset will ultimately reach $1 million, though he hasn’t given a date as to when he thinks this will occur.
Either way, he’s bullish when it comes to bitcoin, stating:
I think that bitcoin will eventually rise to become the global reserve currency. I think bitcoin will eventually be much, much larger than the gold market cap… There were trillions of dollars that were printed and injected into the economy, and everyone from individuals to financial institutions and corporations ran around the world looking for the best way to protect their purchasing power. They ultimately decided it was bitcoin.
In addition, he says bitcoin’s lack of centralization is going to help propel the network even further, and that more people are likely to become involved in the coming months. He says:
As more and more people come into the market, there is more liquidity. As there is more liquidity, there is more utility. As there’s more utility, there’s more stability in the price… You get kind of this evolution. If you think about that internet economy, there is no native currency… [Bitcoin] will eventually take that seat at the kingdom of being that global reserve currency of the internet generation.
Adding Doubt to the Equation
Despite all this, JPMorgan is still very much taking on an attitude of gloom and doom, citing the currency’s ongoing volatility as a major problem for traders and investors everywhere. Nikolaos Panigirtzoglou – global markets strategist at JPMorgan – explained in a statement:
The biggest risk is that the flow impulse we’ve seen over the past months slows materially from here. When the economies reopen, people go back to the office, they have less time to trade at home, and as a result, some of that retail flow impulse slows from here.