The fair value of Bitcoin sits at around $38 000, according to JPMorgan strategists led by Nikolaos Panigirtzoglou. Bloomberg reports this.<\/p>\n
Analysts assumed that the cryptocurrency’s volatility is roughly four times that of gold. In a scenario where the volatility ratio of assets declines to three times, the fair value of Bitcoin would rise to $50 000, they noted.<\/p>\n
As of writing, digital gold is trading near $43 400 (CoinGecko<\/a>), about 12% above the level indicated by JPMorgan strategists.<\/p>\n \\”The biggest obstacle to Bitcoin’s momentum is its volatility and the boom-and-bust cycles that hinder further institutional adoption,\\” the experts noted.<\/p>\n<\/blockquote>\n The long-term target for Bitcoin’s price is $150 000. Analysts calculate it as the level at which Bitcoin’s market capitalization would equal the value of private investments in gold. In January 2021 they named similar figures<\/a> \u2014 $146 000.<\/p>\n The strategists also stated that the January price correction, being smaller than the May one, resembled capitulation. Bitcoin then fell 50%.<\/p>\n However indicators such as open interest in futures and exchange reserves currently point to a prolonged and, therefore, more worrying trend of shrinking positions, which began in November, they stressed.<\/p>\n\n