Bitcoin Price Surges Above $52000, Sustenance Of Such High Prices A Concern

In Wednesday's session, bitcoin hit new high of $52577.5 with a market cap of over $900 billion even as analyst see a threat to sustenance of such prices amid increased volatility.
The huge surge is on the back of wider adoption as a mainstream payment by Tesla, Mastercard and later by BNY Mellon. Nonetheless, some of the analysts see it to be far from from becoming a widely used form of payment.

Bitcoin Price Surges Above $52000, Sustenance Of Such High Prices A Concern

"Bitcoin presently is not an efficient manner for high-volume transacting, and it is certainly not a store of value as its price volatility at 80% is a dozen times higher than the euro and sevenfold of the Russian rouble," said Harley Bassman, managing partner at Simplify Asset Management.

"That said, it is a perfectly legitimate speculative asset, quite similar to Dutch tulips in 1636. Will it meet the same fate? That is unclear. As such, size your risk appropriately."
There has been a phenomenal eight fold surge in bitcoin price since March and JP Morgan also put a question on the scale of its jump with a flow of just $11 billion from institutional investors.

Its limited supply - based on "miners" producing a set number of new coins - has led to holders charging a premium on bitcoin coming to market, JPMorgan analysts said in a note. Retail flows may have also magnified institutional flows, they said.

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