VeChain (VET) price prediction for March
- JPMorgan analysts believe that not many companies will follow Tesla and invest in Bitcoin
- News that Tesla bought $1.5 billion of Bitcoin sent the entire cryptocurrency market higher
- VeChain price is trading around 32% higher today to bring total weekly gains to about 100%
VeChain (VET) price is trading about 100% higher this week as the altcoins continue to follow Bitcoin (BTC) higher.
Fundamental analysis: JPMorgan says it is unlikely that others will follow Tesla’s Bitcoin bet
News that Tesla bought $1.5 billion of Bitcoin and it is preparing to start accepting crypto payments sent the entire cryptocurrency market higher. RBC analysts were quick to suggest that Apple may be next to follow suit but JPMorgan analysts disagree.
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“The main issue with the idea that mainstream corporate treasurers will follow the example of Tesla is the volatility of Bitcoin,” JPMorgan strategists at the bank led by Nikolaos Panigirtzoglou said.
JPMorgan pointed out that treasury portfolios of these companies usually involve bank deposits, money market funds, and short-dated bonds, which means that the amount of volatility within a year stands at roughly 1%.
Including another 1% of Bitcoin allocation “would cause a big increase in the volatility of the overall portfolio,” the team said. This would mean that the portfolio volatility may climb to 8% due to Bitcoin’s 80% annualized volatility, the bank added.
However, Bitcoin supporters welcomed Tesla’s move, saying that it helps push crypto assets further into the mainstream. After the carmaker made the announcement, popular crypto investor Mike Novogratz said that soon “every company in America” would accept Bitcoin as payment.”
When it comes to how sustained the current Bitcoin trend becomes, JPMorgan said it might depend on whether “less speculative” institutional flows materialize, like the ones into the Grayscale Bitcoin Trust.
Technical analysis: VET explodes higher
VeChain price is trading around 32% higher today to bring total weekly gains to about 100%. The value of this digital asset practically doubled in just a week. Overall, VET price soared 500% in less than two months.
However, in order for new buyers to get a solid opportunity to buy VET, a deeper pullback is needed towards $0.35, where the old resistance zone is located.
JPMorgan analysts said it is not likely that other high-profile companies will follow Tesla’s decision to buy $1.5 billion of Bitcoin. In the meantime, altcoins continued to trade higher with VeChain price soaring 100% in a week.