JPMorgan, in an email note released to customers on Thursday, cited Bitcoin’s diminished volatility as a positive factor for institutional interest in the asset. In an article covering the launch of Bloomberg, strategists including Nikolaos Panigirtzoglou of JPMorgan wrote:
“These tentative signs of normalizing Bitcoin volatility are encouraging … In our opinion, a potential normalization of Bitcoin volatility here would probably help to reinvigorate institutional interest going forward.”
Based on the decline in Bitcoin’s long-term volatility, strategists revised their Bitcoin price target to align with private market investment in gold.
“Considering how big the financial investment in gold is, any exclusion of gold as an ‘alternative’ currency implies a big advantage for bitcoin in the long run … Mechanically, the price of Bitcoin would have to go up [to] $ 130,000 to match the total private sector investment in gold ”, JP Morgan supposedly said in the email.
In what has been a landmark year for Bitcoin, the continued support of companies established in the legacy financial sector is quite optimistic, with Goldman Sachs and Morgan Stanley entering orders to offer products on the market.
As time passes and the price of Bitcoin continues to fly behind further adoption and market entry, expect further upward revisions to the target price of JPMorgan and others, which have historically remained very pessimistic. Combining private sector investment in gold is just the beginning, as Wall Street will discover.