Global investment bank JPMorgan has predicted that the long-term price of bitcoin will reach $150K while the fair value of the cryptocurrency sits at $38K. “The biggest challenge for bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption,” JPMorgan’s analysts explained.
JPMorgan’s Bitcoin Price Prediction
Global investment bank JPMorgan has revealed its forecast for bitcoin’s long-term price as well as the cryptocurrency’s fair value.
JPMorgan Chase & Co.’s strategists, led by Nikolaos Panigirtzoglou, wrote in a research note published Tuesday that their long-term theoretical target for bitcoin is $150K, up from $146K predicted last year.
At this level, the total market value of bitcoin would be on par with that of all gold held privately for investment purposes, they explained.
The analysts clarified that bitcoin’s “fair value” is around $38K, up from $35K estimated last year.
They calculated the fair value of the coin based on the fact that bitcoin was around four times more volatile than gold, adding that if the volatility differential narrowed to three times, BTC’s fair value would rise to 50. $000.
The JPMorgan strategists wrote:
The biggest challenge for bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption.
At the time of writing, the price of bitcoin is $43,855 based on data from Bitcoin.com Markets. BTC is up nearly 19% in the past seven days and nearly 5% in the past 30 days.
Meanwhile, a JPMorgan client survey shows that the majority of respondents expect bitcoin’s price to reach $60K or more this year. The firm currently offers some crypto investments to clients.
Nonetheless, JPMorgan CEO Jamie Dimon continues to warn people against investing in crypto, citing that the assets have no intrinsic value. He called bitcoin worthless in October last year, questioning its limited supply.
