JPMorgan Bank specialists called the long-term goal for the first cryptocurrency rate of $ 130,000, having lowered the bar due to the fall in gold quotes, reports Business Insider…
In January, the bank’s analysts said that Bitcoin in the long term could reach $ 146,000. They developed a forecast based on calculating the theoretical capitalization of the first cryptocurrency in the event of an inflow of funds from the gold market, for which cryptocurrency is becoming a digital alternative.
According to JPMorgan, the precious metal has outflowed $ 20 billion since mid-October, while companies have poured $ 7 billion into Bitcoin.
The bank confirmed that digital gold is becoming an increasingly popular asset with low correlation with major markets, which investors see as a means of portfolio diversification.
The specialists noted that the obstacle to the adoption of Bitcoin by institutional players in 2020 was the high volatility, which has been decreasing in recent weeks.
The bank revised its previous forecast due to the fall in the price of gold – in January an ounce of the metal cost $ 1900, and in March it fell to $ 1700.
“The decline in the gold price since then has mechanically reduced the perceived upside potential of bitcoin as a digital alternative, provided it balances with the weight of the precious metal portfolio,” JPMorgan explained.
The long-term target for the cryptocurrency rate is based on the idea that the volatility of it and gold will converge. But this is a long-term process, the bank reminded, – so far the realized three-month asset volatility is 86% and 16%, respectively.
Previously, JPMorgan analysts recommended that clients invest part of their portfolio in bitcoin. The bank noted an increase in demand for digital gold from institutional investors, but stated that in the first quarter of 2021, most of the bitcoins were purchased by retail buyers.
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JPMorgan Bank specialists called the long-term goal for the first cryptocurrency rate of $ 130,000, having lowered the bar due to the fall in gold quotes, reports Business Insider…
In January, the bank’s analysts said that Bitcoin in the long term could reach $ 146,000. They developed a forecast based on calculating the theoretical capitalization of the first cryptocurrency in the event of an inflow of funds from the gold market, for which cryptocurrency is becoming a digital alternative.
According to JPMorgan, the precious metal has outflowed $ 20 billion since mid-October, while companies have poured $ 7 billion into Bitcoin.
The bank confirmed that digital gold is becoming an increasingly popular asset with low correlation with major markets, which investors see as a means of portfolio diversification.
The specialists noted that the obstacle to the adoption of Bitcoin by institutional players in 2020 was the high volatility, which has been decreasing in recent weeks.
The bank revised its previous forecast due to the fall in the price of gold – in January an ounce of the metal cost $ 1900, and in March it fell to $ 1700.
“The decline in the gold price since then has mechanically reduced the perceived upside potential of bitcoin as a digital alternative, provided it balances with the weight of the precious metal portfolio,” JPMorgan explained.
The long-term target for the cryptocurrency rate is based on the idea that the volatility of it and gold will converge. But this is a long-term process, the bank reminded, – so far the realized three-month asset volatility is 86% and 16%, respectively.
Previously, JPMorgan analysts recommended that clients invest part of their portfolio in bitcoin. The bank noted an increase in demand for digital gold from institutional investors, but stated that in the first quarter of 2021, most of the bitcoins were purchased by retail buyers.
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