Bitcoin is currently trading above $57,000. Bears are starting to call the rally "unsustainable." Many have called for Bitcoin to hit $100,000 by the end of 2021. This past week, Anthony Scaramucci, founder of SkyBridge Capital, forecasted that the cryptocurrency would hit $100,000 by year-end. However, he also issued a warning to investors that they should be cautious when buying cryptocurrencies. The SkyBridge Bitcoin Fund LP has around $500 million in bitcoins, according to Scaramucci.

“I do think we see $100,000 in this coin before year-end,” Scaramucci said. “It’s just a supply and demand situation,” he said.

On Tuesday, JPMorgan Chase & Co. published research stating that volatility in the price of Bitcoin made its current valuation unsustainable. “In other words, bitcoin, at current market prices, has already more than doubled relative to gold in risk capital terms. In our opinion, unless bitcoin volatility subsides quickly from here, its current price of $48,000 looks unsustainable,” wrote JPMorgan strategists.

JPMorgan believes that the Bitcoin rally should be attributed to corporate interest rather than institutional interest. This is different than the narrative that has been flowing through online chats comprised of retail investors. “What has been remarkable over the past five months is that the $700[billion] increase in the market cap of bitcoin has taken place with relatively little institutional flows,” wrote JPMorgan.

JPMorgan has two theories to justify the massive rise in the price of Bitcoin.

The first states that the finite supply of Bitcoin is helping drive the price. The second is that retail investors are purchasing more cryptocurrency than previous estimates. “A second possibility is that retail inflows have significantly magnified the institutional flow. As mentioned in the first section above, the US retail impulse has been particularly strong since January and there is little doubt that this retail impulse has been a driving force not only for equities, but also for bitcoin,” the strategists said.

Where the cryptocurrency goes from here will depend on increasing interest from corporations.

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