JPMorgan Predicts Long-Term Bitcoin Price of $150K — Outlines Challenges Ahead
The global investment bank JPMorgan predicts bitcoin will reach $150K over the long term, while the fair value of the cryptocurrency is $38K. However, JPMorgan analysts noted that “the biggest obstacle bitcoin faces going forward is its volatility and boom and bust cycles that hinder further adoption.”
JPMorgan has revealed its prediction for the cryptocurrency’s fair value and long-term price.
In a study published in February, The JPMorgan Chase & Co. strategists led by Nikolaos Panigirtzoglou stated that bitcoin’s long-term theoretical target is $150K, up from $146K predicted last year.
As they explained, bitcoin’s market value would be comparable to all gold held privately for investment.
The analysts confirmed bitcoin’s “fair value” is around $38K, up from $35K estimated last year.
The fair value of bitcoin is calculated based on its volatility, being roughly four times as volatile as gold. If the volatility differential is narrowed to three times, Bitcoin will rise to $50K.
According to them, the biggest obstacle to bitcoin’s adoption in the future is its volatility and the boom and bust cycles that hamper further institutional adoption.
It is said that the majority of respondents to a recent JP Morgan survey expect bitcoin’s price to reach $60K or more this year. The firm currently offers crypto investments to its clients as well.
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