JPMorgan raises its Bitcoin (BTC) target to $150,000.
American banking giant JPMorgan predicts that Bitcoin, the largest cryptocurrency by market capitalization, will reach $150,000 in the long run. This is an updated figure, a slight increase from last year’s $146,000 target.
The bank also stated that the fair value of the leading cryptocurrency is currently around $38,000, which is roughly 13% lower than where it is currently traded on major spot exchanges. JPMorgan’s assessment is based on the fact that Bitcoin’s volatility is four times higher compared to gold. For BTC to become more valuable, it would need to become significantly less volatile.
However, another bear market is seen by JPMorgan as the biggest obstacle to Bitcoin adoption:
“The biggest challenge going forward for Bitcoin are bullish and bearish cycles that hinder volatility and further institutional adoption.”
Bitcoin dropped to $32,950 on January 24 before making an impressive comeback. On February 8, Bitcoin peaked at $45,501 on the Bitstamp exchange, but the rally soon stopped.
Bitcoin was trading at $44,244 at the time of writing.
6872
