JPmorgan lowers his fair price estimate for Bitcoin in the middle of volatility to USD 38,000 -
JPmorgan lowers his fair price estimate for Bitcoin in the middle of volatility to USD 38,000 -
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The leading investment bank JPMorgan has changed its view of the estimate of the Bitcoin Prize in the long term. The institution estimated a long -term price of $ 146,000 in November when Bitcoin was over $ 60,000. One of the most important reasons for this change has to do with the increased volatility that has recently been exposed to the asset.
JPMorgan changes long-term Bitcoin price estimate
jpmorgan, one of the largest financial institutions in the world, has increased drastically changed his opinion at the price that reaches the price becomes. While JPmorgan was optimistic last year when this number estimated almost $ 150,000, it reduced its estimates due to the situation that the market is experiencing this year.
The new price of $ 38,000, about a quarter of the previously calculated number, was estimated in a different context in terms of gold and bitcoin and the volatility of the market. JPmorgan explained in a note:
Our previous forecast that the volatility ratio from Bitcoin and Gold will later fall to the two that is about two times this year appears unrealistic. Our fair value for Bitcoin, based on a volatility ratio from Bitcoin to gold of about 4x, would be 1/4 of $ 150,000 or $ 38,000
Increased volatility harms institutional acceptance
Another factor that JPMorgan examined is the volatility that Bitcoin and the cryptom market have experienced as a whole. According to the bank, this makes it difficult for institutes to set their bets on Bitcoin for other reasons than a speculative asset.
The note closed:
The biggest challenge for Bitcoin in the future is its volatility and boom and bust cycles that hinder another institutional introduction.
The latest slump in cryptocurrency prices was attributed to several factors, and some were of the opinion that the latest announcements in the Federal Reserve would influence the cryptoma markets that would have a correlation with other markets such as the S&P500. One of these people was Arthur Hayes, who in a recently published summary entitled "Circo Loco" recommended "wait and" see "approach for investors want.
also a report by Huobi with the title "Tafer Landed", which was published in December, upcoming tapering would affect the growth of the cryptocurrency market. JPmorgan believes that the market could continue to decrease, since it did not find any signs of a capitulation in the recent market movements.
What do you think about the reduced expectations for Bitcoin from JPMorgan? Tell us in the comment area below.
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