/https://specials-images.forbesimg.com/imageserve/60585d3d60d1b3bd4a7ca8ff/0x0.jpg "JPMorgan reveals Bitcoin’s ‘big’ price forecast as the Bitcoin and crypto market rises to $ 2 trillion")
Bitcoin won its fair share of Wall Street supporters this year amid a bull run that saw it rise by around 500%.
The price of bitcoin reached highs of just over $ 60,000 per bitcoin last month, before dropping slightly, but has since recovered lost ground. Meanwhile, the broader cryptocurrency market has reached nearly $ 2 trillion – driven by decentralized finance tokens (DeFi).
Now, analysts at the Wall Street banking giant and former bitcoin skeptic JPMorgan have said that bitcoin could rise to $ 130,000 in the long run if it continues to see its volatility converge with that of gold.
The price of bitcoin has skyrocketed in the past six months, reaching around $ 60,000 per bitcoin.
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“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,” wrote JPMorgan analysts led by Nikolaos Panigirtzoglou in a note to customers this week.
The bank found that a six-month measure of bitcoin volatility appeared to be stabilizing around the 73% mark – suggesting “tentative signs of normalizing bitcoin volatility” that could help “reinvigorate” the interest of institutional investors.
The high volatility “acts as an obstacle to further institutional adoption”, according to JPMorgan.
The price of bitcoin has skyrocketed as institutional investors, including London asset manager Ruffer and insurance giant MassMutual, have bought bitcoin – with Elon Musk’s Tesla spearheading a series of high-profile bitcoin bets.
The price of bitcoin has gone up from about $ 10,000 per bitcoin to about $ 60,000 as a result, but JPMorgan thinks there may still be some way to go.
“Mechanically, the price of bitcoin would have to go up [to] $ 130,000 to match the total private sector investment in gold, “wrote JPMorgan analysts.
The price of bitcoin exceeded $ 60,000 per bitcoin in March, before settling just below the psychological level … [+]
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The bitcoin community is, however, feeling happy after the sensational 2021 bitcoin race.
“After a stellar performance in the first quarter that saw the crypto king set a record high of $ 61,700, bitcoin enters April leading a seemingly dynamic cryptocurrency market,” Paolo Ardoino, bitcoin chief technology officer based in the Virgin Islands British and Bitfinex, from the cryptocurrency exchange, said in comments by email, pointing to PayPal’s announcement this week that it will soon allow users to spend bitcoin and a handful of other cryptocurrencies on its 29 million traders across the world.
“As PayPal’s recent announcement demonstrates, the inherent volatility of digital tokens is not a barrier to their increasing use in payments. This recovery may be the harbinger of the first significant invasions of bitcoin in the legacy financial system and the credit card industry. “