According to bank analysts, the volatility of bitcoin decreased from 60% at the beginning of the year to 30% at the moment, which has become a historical minimum.
JPMorgan added that if at the end of 2024 the first cryptocurrency was traded $ 36,000 above its fair value, now it is $ 13,000 lower, which opens up opportunities to further increase the asset quotes.
The ratio of bitcoin’s volatility to gold also decreased to a historical minimum – 2.0. That is, cryptocurrency requires twice as much risky capital than gold in portfolio investments, experts said.
In order to catch up with investments in gold ($ 5 trillion), the market capitalization of the first cryptocurrency ($ 2.2 trillion) should grow by at least 13%, which corresponds to a price of $ 126,000.
A significant impact on this process can be exerted by increasing BTC procurement growth in large funds. At the moment, they keep over 6% of the total offer of the first cryptocurrency, which reduces the volatility of the asset, analysts say.
JPMorgan compared this dynamics with quantitative softening programs after 2008, when the central bank, buying bonds, reduced the volatility of the stock market.
Earlier, experts of the BitWise investment company have published a forecast according to which bitcoin can grow to $ 1.3 million by 2035, due to the limited supply of BTC and high demand for it among large companies.
Source: Bits
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