Bitcoin has experienced its highest level of volatility since November 2022 last week. The range of fluctuations in the digital currency has increased in February.
The trigger for this turbulence was the launch of exchange-traded cryptocurrency funds investing in Bitcoin, as well as the approaching “halving” event. This event, which will result in a reduction of miner rewards, is expected to take place at the end of April.
Analysts believe that it will help strengthen demand for BTC. However, investment bank JPMorgan believes that volatility will become a hurdle for Bitcoin to establish itself as an independent asset class.
According to JPMorgan strategist Nikolaos Panigirtzoglou, BTC is 3.7 times more volatile than gold, which is considered the safest asset in the world.
