JPMorgan, in an email message to clients Thursday, cited the reduction in Bitcoin volatility as positive for institutional interest in the asset. In an article on the publication of BloombergStrategists such as JPMorgan’s Nikolaos Panigirtzoglou wrote:
“These preliminary signs of Bitcoin volatility normalizing are encouraging … In our opinion, a possible normalization of Bitcoin volatility from here would likely help re-energize institutional interest in the future.”
Due to the decreasing long-term volatility of Bitcoin, the strategists have revised their Bitcoin price target to align it with private market investments in gold.
“Given the size of the financial investment in gold, such displacement of gold as an ‘alternative’ currency means a big upward trend for Bitcoin in the long run … Mechanically, Bitcoin price should rise [to] $ 130,000 to cover total private sector investment in gold. ” JP Morgan According to reports in the email.
In a landmark year for Bitcoin, continued support from established companies in the legacy financial sector is very positive as Goldman Sachs and Morgan Stanley both submit to offer products in this space.
As time goes by and Bitcoin price continues to rise due to the additional adoption and entry into space, expect additional upward revisions to price targets from JPMorgan and others who have historically remained far too bearish. As Wall Street will find out, adjusting private sector investment in gold is just the beginning.