According to JPMorgan Chase strategists led by Nikolaos Panigirtzoglou, the “fair value” of Bitcoin (BTC) is about 12 percent below the current price due to the volatility compared to gold. However, the famous bank says that it aims to increase the largest cryptocurrency by market capitalization to $ 150,000 in the long term. As Kriptokoin.com, we convey the details…
New comment for Bitcoin price from JPMorgan
In a note released Tuesday, strategists calculated the “fair value level” at roughly $38,000, based on Bitcoin’s being roughly four times as volatile as gold. This marks a value that is 12 percent behind its current level. In a scenario where the volatility gap narrowed threefold, they estimated that the fair value had risen to $50,000. Bitcoin was trading at $ 43,400 as of writing.
“Bitcoin’s biggest challenge going forward is its volatility and bullish and bearish cycles that hinder further institutional adoption,” the strategists said. Panigirtzoglou’s long-term theoretical target for Bitcoin has risen from $146,000 a year ago to $150,000 now. Meanwhile, Bitcoin is trading above what JPMorgan considers fair value levels. For Bitcoin to achieve the aforementioned goal, the leading cryptocurrency will need to match the private investment in gold, which is estimated at around $2.7 trillion. BTC’s market cap had hit $1.3 trillion on November 10.
Latest situation in BTC price
Strategists also said that the price correction in January marked less “capitulation” than last May, when Bitcoin fell by as much as 50 percent. Still, metrics such as open interest and reserves on exchanges point to a “prolonged and therefore more alarming trend of position reduction” that began in November.
Finally, the leading cryptocurrency, which fell below $33,000 on Jan. 24, turned bullish earlier this week. BTC managed to climb up to $ 45,500. The coin, which was traded at $ 43,473 with a decrease of 1.4 percent at the time of writing, reached a record level of $ 69,044 on November 10.
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