Bitcoin has been struggling in its attempts to break the resistance level set at $40K.

After Tesla announced the adoption of Bitcoin and invested $1.5 billion in it, the price of Bitcoin quickly crossed the 40,000 level to high levels without regard for any previous resistance, as the news was powerfully influential.

With Billionaire Elon Musk’s Tesla joining other institutions like MicroStrategy and Square to make their treasury reserves in the form of Bitcoin, speculation has been fueled within the crypto sector about the next company to make a massive Bitcoin purchase. .

A report by RBC analysts went so far as to suggest that Apple is expected to be the next company to accept and support bitcoin.

Read:Bitcoin soars to $22,000 with weekly close above $21,000

The report indicated that Apple could generate up to $40 billion in annual revenue by accepting bitcoin.

How will Tesla join the crypto market?

Will more companies join?

In a new statement from JPMorgan analysts about institutional companies that support bitcoin, they note that Tesla’s support for bitcoin has been a remarkable and influential thing in the crypto industry.

But investors should not expect an institutional trend to start so easily.

This is due to the volatile nature of bitcoin, JPMorgan analysts explained, telling:

The main problem with the idea that major corporate treasurers will follow Tesla’s lead is bitcoin’s volatility.

Strategists have explained that corporate treasury portfolios, which usually consist of various assets such as money market funds and short-term bonds, are grouped in such a way that their annual acceptable volatility is about 1% of the total balance sheet.

However, experts have made clear that even allocating 1% of bitcoin to a company’s treasury reserves would send the company’s volatility from a consolidated 1% to a high of 8%, and not everyone can afford that.

Read:One of the largest remittance companies in Latin America joins the Ripple network to use the currency (XRP)

However, JPMorgan strategists acknowledged and praised Tesla’s investment in bitcoin, as it pushed bitcoin to a new all-time high of more than $40,000.

They wrote in this regard:

No matter how many companies eventually followed Tesla, there is no doubt that this week’s announcement has surprisingly changed the near-term trajectory of Bitcoin by boosting inflows and helping Bitcoin cross $40,000.

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