Investors who invest in cryptocurrencies (virtual currencies) such as Bitcoin have been warned that they should prepare for a situation where their value drops to’zero’.
David Lebovits, a global market strategist for JP Morgan Asset Management, said on his website on the 27th (local time), “Anyone who wants to invest in virtual assets and cryptocurrencies should be prepared for their value to drop to ‘0’.”
He pointed out that the volatility of cryptocurrency is extreme.
Bitcoin surpassed $64,000 on April 15, hitting an all-time high. However, after a month, it fell to the level of 35,000 dollars, down 45% from the previous high. As of the 28th, Bitcoin is trading at the level of 37,000 dollars.
In another report, JPMorgan pointed out that investors are showing signs of leaving the bitcoin market called’online gold’ and returning to the gold market.
As the volatility of the cryptocurrency market is so intense, investors who are irritated by this are returning to the gold market, which is their natural inflation hedge.
