Bitcoin has gained its fair share of Wall Street fans this year amid a bull race that has been seen firing around 500%.
The price of bitcoin hit highs of just over $ 60,000 per bitcoin last month before falling slightly, but has since regained lost ground. Meanwhile, the broader cryptocurrency market has risen to nearly $ 2 trillion, driven by decentralized financing (DeFi) tokens.
Now, analysts at Wall Street banking giant and former bitcoin skeptic JPMorgan have said Bitcoin could rise as high as $ 130,000 in the long run if it continues to see its volatility converge with that of gold.
The price of bitcoin has skyrocketed over the past six months, to $ 60,000 per bitcoin.
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“Given the importance of financial investment in gold, reducing gold as an‘ alternative ’currency implies a big boost for bitcoin in the long run,” JPMorgan analysts wrote in a note to clients this week directed by Nikolaos Panigirtzoglou.
The bank found that a six-month measure of bitcoin volatility appeared to be stabilizing at around 73%, suggesting “temporary signs of normalization of bitcoin volatility” that could help “invigorate” investor interest. institutional.
According to JPMorgan, high volatility “acts as a headwind toward greater institutional adoption.”
The price of bitcoin has risen as institutional investors, including London-based asset manager Ruffer, and insurance giant MassMutual have bought bitcoins, with Elon Musk’s Tesla surpassing a number of ‘high profile bitcoin betting.
As a result, the price of bitcoin has risen from about $ 10,000 per bitcoin to about $ 60,000, but JPMorgan believes there could still be some way to run.
“Mechanically, the price of bitcoin should rise [to] $ 130,000, to match the private sector’s total investment in gold, ”JPMorgan analysts wrote.
The price of bitcoin broke at $ 60,000 per bitcoin in March before settling just below the psychological … [+]
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Meanwhile, the bitcoin community is feeling energetic after Bitcoin’s sensational 2021 race.
“After a stellar performance during the first quarter that saw the king of cryptocurrencies hit an all-time high of $ 61,700, bitcoin enters April at the head of a seemingly thriving cryptocurrency market,” he said. say Paolo Ardoino, the head of bitcoin technology based in the British Virgin Islands and Bitfinex, a cryptocurrency exchange, said in comments sent by email, noting this week’s PayPal announcement that it will soon allow users to spend bitcoins and a handful of other cryptocurrencies in its 29 million merchants worldwide.
“As the recent PayPal announcement demonstrates, the inherent volatility of digital tokens is no barrier to their growing use in payments. This concentration could herald the first significant Bitcoin intrusions into the legacy financial system and the credit card industry “.