Bitcoin has gained a fair share of Wall Street supporters this year.
Bitcoin price hit highs of just over $ 60,000 per bitcoin last month before falling slightly, but has since lost ground. Meanwhile, the broader cryptocurrency market has grown to nearly $ 2 trillion – supported by DeFi (decentralized finance) tokens.
Now analysts at Wall Street banking giant and former Bitcoin skeptic JPMorgan have said that Bitcoin could rise as high as $ 130,000 in the long run if volatility continues to converge with that of gold.
Bitcoin price has soared to around $ 60,000 per bitcoin in the past six months.
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“Given the level of financial investments in gold, such displacement of gold as an ‘alternative’ currency means a big upward trend for Bitcoin in the long term,” JPMorgan analysts, led by Nikolaos Panigirtzoglou, wrote in a statement to customers this week.
The bank noted that a six-month measure of bitcoin volatility appeared to be stabilizing around the 73% mark – suggesting “preliminary signs of bitcoin volatility normalizing” that may help revive institutional investor interest “.
High volatility “acts as a headwind for further institutional takeover,” said JPMorgan.
Bitcoin price has risen as institutional investors like London-based wealth manager Ruffer and insurance giant MassMutual turned to Bitcoin. Elon Musk’s Tesla has made a number of high profile Bitcoin bets.
Bitcoin price has risen from around $ 10,000 per bitcoin to around $ 60,000 as a result, but JPMorgan believes there might still be a way to run.
“Mechanically, the Bitcoin price should rise [to] $ 130,000 to cover total private sector investment in gold, “wrote JPMorgan analysts.
Bitcoin price broke $ 60,000 per bitcoin in March before settling just below the psychological price … [+]
The Bitcoin community is now feeling red after Bitcoin’s sensational run in 2021.
“After a stellar performance in the first quarter, with the king of cryptography hitting an all-time high of $ 61,700, Bitcoin kicks off in April and leads what appears to be a buoyant cryptocurrency market,” said Paolo Ardoino, chief technology officer, Bitcoin and Cryptocurrency Exchange Bitfinex, mentioned in email comments and pointing to PayPal’s announcement this week, will soon allow users to spend Bitcoin and a handful of other cryptocurrencies at its 29 million merchants worldwide.
“As PayPal’s recent announcement shows, the inherent volatility of digital tokens is not a hindrance to their increased use in payments. This rally could potentially herald the first significant interventions by Bitcoin in the legacy financial system and credit card industry.”