JP Morgan announced that they are noticing decreased volatility of Bitcoin. The firm released a new price target for Bitcoin. The previous target was $146,000 and now it has been decreased down to $130,000.
Bitcoin new price target by JP Morgan
The new price target of Bitcoin comes amidst the time when more companies and institutions are accepting it as a payment method. It is shows that in its lifetime Bitcoin is the least volatile now. And that makes it a much better investment. Earlier there were people who feared investing in it due to the huge swings. But now, that could change as the price could increase more subtly or drop in the same manner.
The reason for this new price target is the type of investment gold is getting. According to JP Morgan, the price increase of BTC could be to combat the private investment in gold. Therefore, this indicates that the firm believes Bitcoin to be a suitable replacement for gold. And as more companies and institutions invest in Bitcoin we could see even higher price targets. A report shows that the BTC price could increase drastically if the SEC approves an ETF for the same. This is what happened with Gold when an ETF was introduced back in the mid-2000s.
New Wall Street Bitcoin Report Reveals Radical $100,000 Bitcoin Price Model ‘Worth Understanding’
Wall Street giant BNY Mellon has called the controversial bitcoin stock-to-flow model that predicts bitcoin reaching $100,000 in July “worth understanding” in a new report. “The stock-to-flow ratio is one of the more interesting valuation concepts and is worth understanding despite its flaws,” BNY Mellon analysts wrote in a report last week. The bank is jumping into the bitcoin game after announcing in February it aims to hold bitcoin and other cryptocurrencies on behalf of its customers.
“In many forms, the stock-to-flow model is elegant (and potentially flawed) in its simplicity,” the bank’s researchers wrote. “It provides that relativity to link bitcoin with a much more established gold market/framework.”