[GAM] JPMorgan “Invest in Tesla Bitcoin, don’t expect from other companies”

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[서울=뉴스핌] Reporter Lee Hong-gyu = Investment bank JP Morgan expressed skepticism about whether mainstream companies will follow Tesla’s (NASDAQ: TSLA) bitcoin investment.

Analysts of JP Morgan, led by Nikolaos Panigirzoglu, issued a report and insisted not to expect other conglomerates to follow Tesla’s decision, Bloomberg News reported on the 9th (local time).

On the 8th, Tesla announced that it invested $1.5 billion in Bitcoin and plans to accept it as a payment method. After this news came out, the price of bitcoin at one time on the same day, surpassing $48,000 each and recording a reported price, showed a sharp rise.

JPMorgan cited bitcoin’s’volatility’ as a reason for his skeptical outlook. Typically, a corporate financial portfolio consists of bank deposits, money market funds, and short-term bonds. JPMorgan’s estimate of the annual price fluctuation of such a portfolio is about 1%.

On the other hand, Bitcoin’s annual price fluctuations are much larger at 80%. Even if Bitcoin is added to the portfolio at a rate of 1%, the overall variation of the corporate portfolio will increase significantly to 8%. From the standpoint of corporate finance managers who want to manage their financial assets safely, Bitcoin is an asset that cannot but be reluctant.

However, JP Morgan evaluated Tesla’s decision as a move to pay attention to. “Regardless of how many companies follow Tesla’s case, there is no doubt that this week’s announcement has dramatically changed the bitcoin’s short-term trajectory, increasing the inflow to bitcoin and helping the bitcoin price exceed $40,000 “No.”

He said that the continuation of such a rise in bitcoin depends on how much money from institutional investors with low speculative nature will flow into the’Grayscale Bitcoin Investment Trust’.

Bitcoin [사진= 로이터 뉴스핌]

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