JPMorgan, in an email note posted Thursday to clients, cited the decline in Bitcoin volatility as positive for institutional interest in the asset. In an article on the publication of Bloomberg, strategists including Nikolaos Panigirtzoglou at JPMorgan wrote:
“These temporary signs of normalization of Bitcoin volatility are encouraging … In our view, a potential normalization of Bitcoin volatility from here would likely help revive institutional interest in the future.”
Based on the declining long-term volatility of Bitcoin, strategists revised their Bitcoin price target to align with private market investment in gold.
“Given the importance of financial investment in gold, any passion for gold as an‘ alternative ’currency implies a big rise for bitcoin in the long run … Mechanically, the price of Bitcoin should rise [to] $ 130,000 to match total private sector investment in gold, ” JP Morgan as stated in the email.
In what has been a benchmark year for Bitcoin, continued support from legacy financial sector holders is very bullish, with Goldman Sachs and Morgan Stanley presenting both products to offer products in the space.
As time goes on and the price of Bitcoin continues to fly after additional adoption and entry into space, expect additional revisions to JPMorgan’s and other rising price target, which historically they have remained too bearish. Matching private sector gold investment is just the beginning, as Wall Street will come to find out.