JPMorgan Annoyed: Bitcoin Price Should Be At These Levels!

Leading investment bank JPMorgan has changed its view on its long-term forecast for Bitcoin price.
 JPMorgan Annoyed: Bitcoin Price Should Be At These Levels!
READING NOW JPMorgan Annoyed: Bitcoin Price Should Be At These Levels!

Leading investment bank JPMorgan has changed its view on its long-term forecast for Bitcoin price. The institution predicted a long-term price of $146,000 in November, when Bitcoin was above $60,000. One of the most important reasons for this change seems to be related to the increased volatility that the asset has been facing recently. Cryptocoin. com, we convey the details…

JPMorgan changes its long-term forecast for Bitcoin price

JPMorgan, one of the largest financial institutions in the world, has drastically changed its mind on the long-term price of Bitcoin. While JPMorgan estimated that figure at around $150,000 last year, it lowered its estimates due to the current state of the market this year. Gold, Bitcoin and market volatility are thought to be behind the new $38,000 estimate, which is about a quarter of the previously calculated number. On this subject, JPMorgan said:

Our previous prediction that the bitcoin/gold volatility ratio will double later this year seems unrealistic. Based on a volatility of around 4x, our fair value for Bitcoin would be 1/4 of $150,000, or $38,000.

Another factor that JPMorgan examined was the volatility experienced by Bitcoin and the crypto market in general. According to the bank, this makes it harder for institutions to bet on Bitcoin, which it sees as a speculative asset. The recent drop in crypto prices was attributed to several factors, and some thought that the recent announcements by the Federal Reserve would affect the crypto markets, which exhibit a correlation with other markets such as the S&P500. JPMorgan believes the market could drop further, as it has not found any signs of capitulation in recent market movements.

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