A team of strategic analysts at JPMorgan bank, led by Nikolaos Panigirtzoglou, named the “fair price” of the first cryptocurrency.
Analysts at one of the largest international banks believe that bitcoin should cost $38,000, 12% cheaper than the current rate. The point is the market volatility of BTC, JPMorgan explains. At the moment, this indicator for bitcoin is four times higher than the same indicator for gold, therefore the capitalization of the first cryptocurrency is much lower. If the volatility of BTC is three times higher than the volatility of gold, then the fair price of bitcoin will rise to $50,000.
“One of the most important obstacles to the growth of the value and capitalization of bitcoin is the strong volatility of this asset, as well as the cyclical ups and downs of the BTC rate. This hinders the inflow of money from institutional investors,” the analysts emphasize.
In November, experts from JPMorgan said that in the long term, the price of bitcoin could reach $146,000. Now, a team of strategists led by Panigirtzoglu raised this goal to $150,000. Analysts also noted that the fall in the BTC rate in January is more like normal market behavior, according to compared, for example, with exchange rate fluctuations in May 2021.
Recall that according to a January customer survey by JPMorgan, 41% of those surveyed expect bitcoin above $60,000 by the end of 2022. True, only 5% of respondents are confident in growth above $100,000.
Source: Bits
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