The fair price of bitcoin is around $38,000, according to JPMorgan strategists led by Nikolaos Panigirtzoglou. This is reported Bloomberg.
Analysts proceeded from the fact that the volatility of the cryptocurrency is about four times higher than that of gold. Under the scenario of reducing the ratio of asset volatility to three times, the fair value of bitcoin rises to $50,000, they noted.
At the time of writing, digital gold is trading near the $43,400 mark (CoinGecko), which is about 12% higher than the level indicated by JPMorgan strategists.
“The biggest challenge for bitcoin moving forward is its volatility and boom and bust cycles that hinder further institutional adoption,” the experts recalled.
Their long-term target for the price of the first cryptocurrency is $150,000. Analysts calculate it as the level at which the market capitalization of bitcoin will be equal to the value of private investments in gold. In January 2021, they named similar numbers – $146,000.
Strategists also said that the January price correction is smaller than May, looks like a capitulation. Then bitcoin fell by 50%.
However, indicators such as open interest in futures and reserves on exchanges now point to a “protracted and therefore more troubling downtrend” that began in November, they said.
Recall, according to the survey, more than 40% of JPMorgan customers expect bitcoin at $60,000 by the end of 2022, and only 5% believe that the rate will reach $100,000.
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The fair price of bitcoin is around $38,000, according to JPMorgan strategists led by Nikolaos Panigirtzoglou. This is reported Bloomberg.
Analysts proceeded from the fact that the volatility of the cryptocurrency is about four times higher than that of gold. Under the scenario of reducing the ratio of asset volatility to three times, the fair value of bitcoin rises to $50,000, they noted.
At the time of writing, digital gold is trading near the $43,400 mark (CoinGecko), which is about 12% higher than the level indicated by JPMorgan strategists.
“The biggest challenge for bitcoin moving forward is its volatility and boom and bust cycles that hinder further institutional adoption,” the experts recalled.
Their long-term target for the price of the first cryptocurrency is $150,000. Analysts calculate it as the level at which the market capitalization of bitcoin will be equal to the value of private investments in gold. In January 2021, they named similar numbers – $146,000.
Strategists also said that the January price correction is smaller than May, looks like a capitulation. Then bitcoin fell by 50%.
However, indicators such as open interest in futures and reserves on exchanges now point to a “protracted and therefore more troubling downtrend” that began in November, they said.
Recall, according to the survey, more than 40% of JPMorgan customers expect bitcoin at $60,000 by the end of 2022, and only 5% believe that the rate will reach $100,000.
Subscribe to Cryplogger news in Telegram: Cryplogger Feed – the entire news feed, Cryplogger — the most important news, infographics and opinions.
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