By Samuel Indyk
Investing.com – The price of bitcoin rose to new all time highs on Friday as the current bull run shows no sign of letting up. This comes despite a warning from JPMorgan and as Tesla Inc (NASDAQ:TSLA) CEO Elon Musk commented on the cryptocurrency.
JPM Comments
Analysts at JPMorgan (NYSE:JPM) released a note on the world’s largest cryptocurrency, calling it “an economic side show” and a poor hedge against a decline in equity prices.
“Crypto assets continue to rank as the poorest hedge for major drawdowns in equities, with questionable diversification benefits at prices so far above production costs, while correlations with cyclical assets are rising as crypto ownership is mainstreamed,” JPMorgan analysts said.
They bank did note that bitcoin’s competition with gold as an “alternative” currency will likely continue as millennials become a more important component of investors’ universe.
Musk Comments
The Tesla CEO Elon Musk took to Twitter to talk about digital assets again. Commenting on a video interview with the CEO of cryptocurrency exchange Binance where he spoke about Tesla’s bitcoin purchase, Musk said, “when fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as bs as fiat money. The key word is “almost”.”
The Binance CEO was also questioning why Elon Musk was so “gung-ho” on Dogecoin, identifying that Tesla had bought bitcoin and not dogecoin to diversify Tesla’s reserves.