It seems that the Bitcoin (BTC) bubble burst for JPMorgan analysts and the current price reflects the true value of the Bitcoin price. Earlier this year, JPMorgan analysts updated the BTC price target to $ 130,000. This was because they thought Bitcoin had to reach this target price to match the total private sector investment with gold.
“A convergence in volatility between bitcoin and gold is unlikely to happen quickly and is probably a multi-year process.”
JPMorgan’s stance made his $ 130,000 target a longer term goal. Since then, JPMorgan has taken steps to support Bitcoin and help institutional investors access cryptocurrency. According to CNBC, CEO Jamie Dimon said JPMorgan would help them buy BTC if customers ask for it. Dimon is known to have a negative opinion about Bitcoin. Even though Dimon helps customers buy BTC, he is still not a BTC supporter.
JPMorgan: The real value of Bitcoin is $ 35k
Many Bitcoin advocates have long argued that Bitcoin is digital gold. However, institutional investors are trading digital gold for traditional gold, according to JPMorgan’s research. After BTC rose above $ 60,000, it fell below $ 40,000 and entries in gold ETFs increased as the futures market saw significant liquidations. As a result, JPMorgan stated that the fair value of Bitcoin will be $ 35,000, depending on the volatility ratio between Bitcoin and gold.
Rising inflation has prompted many institutional investors to seek safer assets. While BTC is often described as a hedge against the dollar, gold is also a traditional asset for those trying to escape USD inflation. While institutional investors currently seem to prefer currency, Bitcoin can also benefit young investors who prefer BTC to gold, experts say. If USD inflation does not drop, BTC could become the preferred asset for young investors.