JPMorgan “There seems to be no Bitcoin investment company along with Tesla”

(Seoul = Yonhap News) Reporter Kim Gye-hwan = JPMorgan Chase predicted that it is unlikely that other large companies will follow Tesla to invest in bitcoin, a cryptocurrency.

According to a Bloomberg News report on the 8th (local time), JPMorgan Chase said that the price volatility of bitcoin is too high for other mainstream companies to follow Tesla to invest in bitcoin.

JPMorgan Chase said that the corporate financial portfolio is usually filled with bank deposits, money market funds (MMF), and short-term bonds. This is a level where the annual price change rate revolves around 1%.

JPMorgan Chase explained that if a company fills 1% of its portfolio with bitcoin, it could mean that the price change rate of the entire portfolio will increase to 8% due to the annual price change rate of bitcoin, which is 80%.

JPMorgan Chase has no doubt that Tesla’s announcement has led to a rapid change in the short-term market situation by encouraging capital inflows and price spikes, but how long this situation will remain is whether or not “less speculative” institutional fund flows Said that it depends on.

Previously, Tesla said in a report published to the US Securities and Exchange Commission (SEC) that it has purchased $1.5 billion worth of bitcoin, and that its electric car will also receive and sell bitcoin.