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JPMorgan analyst satetd a medium-term fair value for Bitcoin price now stands between $24,000 and $36,000

It seems that JPMorgan analysts agree with JPMorgan Chase CEO Jamie Dimon that Bitcoin is not really promising. Recently, they think that Bitcoin price will continue to decline in the short term.

JPMorgan analyst predicted a medium-term fair value for Bitcoin price now stands between $24,000 and $36,000

After the worst May for the Bitcoin price in the past 10 years, the largest cryptocurrency is likely to continue to decline in the short term. The reason is attributed to weakening institutional demand that is likely to drag Bitcoin price below $30,000.

JPMorgan strategist and Bitcoin expert Nikolaos Panigirtzoglou made the same comment in his latest research note to clients.

Based on Bitcoin’s volatility ratio to gold, the JPMorgan analyst forecasts that Bitcoin will continue to trade between $24,000 and $36,000 in the medium term:

“The fair value for bitcoin based on a volatility ratio of Bitcoin to the gold of around x4 would be 1/4th of $145k or $36k. The fair value for Bitcoin based on the current volatility ratio of Bitcoin to the gold of around x6 would be 1/6th of $145k or $24k We thus see a fair value range of $24k to $36k over the medium term.”

Even so, assuming the convergence of Bitcoin’s volatility against gold and the balance of Bitcoin’s allocation to gold in investors’ portfolios, the $145,000 is a long-term theoretical target for BTC’s price:

“$145k is the price of Bitcoin that would equalize it with the private sector holdings of gold for investment purposes of around $2.7tr at the moment. Needless to say, full convergence or equalization of volatilities or allocations is unlikely in the foreseeable future.”

They added:

“The longer-term signal remains problematic, as it has yet to turn short. It would still take price declines to the $26k level before longer-term momentum would signal capitulation.”

Given the current situation, it seems institutional investors don’t seem to want to buy down prices following a major crypto crash on May 19.

Panigirtzoglou noted:

“We note that the mere rise in volatility, especially relative to gold, is an impediment to further institutional adoption as it reduces the attractiveness of digital gold vs. traditional gold in institutional portfolios.”

JPMorgan has previously suggested that major institutional investors are dumping BTC in favor of gold as Bitcoin hits a five-month low near $30,000.

As AZCoin News reported, Peter Brandt, a financial analyst and veteran trader, questioned whether the Bitcoin price is likely to rise again in the near future.

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