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JPMorgan：Tesla’s Bitcoin Buy May Not Trigger Wave of Corporate Demand
Summary: JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note reported by Bloomberg on Wednesday，“The main issue with the idea that mainstream corporate treasurers will follow the example of Tesla is the volatility of bitcoin,”“Corporate treasury portfolios are typically stuffed with bank deposits, money market funds, and short-dated bonds, meaning that annualized volatility – or ...
JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note reported by Bloomberg on Wednesday，“The main issue with the idea that mainstream corporate treasurers will follow the example of Tesla is the volatility of bitcoin,”“Corporate treasury portfolios are typically stuffed with bank deposits, money market funds, and short-dated bonds, meaning that annualized volatility – or the range of swings during the course of a year – hovers around 1%, adding that a 1% bitcoin exposure would cause a significant increase in a portfolio’s volatility to as much as 8%.”
Tesla, the Fortune 500 electric car maker headed by Elon Musk, disclosed its bitcoin investments worth $1.5 billion on Monday, sending the cryptocurrency to fresh record highs above $48,000.
JPMorgan had turned bearish on bitcoin last month following the cryptocurrency’s failure to keep gains above $40,000. Bitcoin spent three weeks in the $30,000–$40,000 range after setting the then-lifetime high of $41,962 on Jan. 8.
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Link: JPMorgan：Tesla’s Bitcoin Buy May Not Trigger Wave of Corporate Demand [Copy]
