VeChain (VET) price gains 15% as bulls target new highs
- The cryptocurrency market has been boosted by higher adoption and interest from institutional investors
- VET price soared about 15% today to increase weekly losses to over 25%
- The buyers are targeting levels above the February highs of $0.627
VeChain (VET) price is trading about 15% higher today as buyers look eager to extend the bull run.
Fundamental analysis: Investors could diversify portfolios through crypto allocation – JPMorgan
The cryptocurrency market has been boosted by higher adoption and interest from institutional investors. For instance, banking titan JP Morgan said investors should consider allocating a portion of their portfolios to Bitcoin as a way to diversify their portfolios. Bitcoin has been praised by analysts as a hedge against fluctuations seen in stocks, bonds, and commodity markets.
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JP Morgan strategists have published a note on Wednesday, advising investors to allocate a small portion of their portfolios to the number one cryptocurrency, which would also protect them from sustaining substantial losses if Bitcoin’s price plummets.
“In a multi-asset portfolio, investors can likely add up to 1% of their allocation to cryptocurrencies in order to achieve any efficiency gain in the overall risk-adjusted returns of the portfolio,” said the bank’s strategists Joyce Chang and Amy Ho in the note.
Bitcoin has soared fivefold over the past year thanks to involvement by institutions and legendary investors including Paul Tudor Jones, Stan Druckenmiller, as well as major corporations such as Tesla, Mastercard, BNY Mellon, and more.
According to data by Crypto.com, Bitcoin had roughly 106 million users last month, compared to 92 million in December 2020. BNY Mellon has recently said its plan to hold, transfer and issue the cryptocurrency for its clients, while the number of assets under management in Grayscale Bitcoin Trust have surged to $33.5 billion since December.
However, Chang and Ho warned investors that the usefulness of cryptocurrencies is limited.
“Cryptocurrencies are investment vehicles and not funding currencies,” they said.
Technical analysis: VET gains
VET price soared about 15% today to increase weekly losses to over 25%. Buyers are now working to extend gains from the last month, when the digital asset finished the month 56% in the green.
Looking from here, the buyers are targeting levels above the February highs of $0.627. In this context, the first target on the upside is $0.07. On the downside, another pullback to $0.035 will be seen as an opportunity to buy VeChain coin.
JP Morgan strategists have advised their clients to allocate a small portion of their portfolios to Bitcoin in a bid to diversify their portfolios as the mass adoption of cryptocurrencies is clearly taking place.