JPMorgan, in an email note released to clients on Thursday, mentioned the decline in Bitcoin volatility as a positive interest for the institutional interest in the asset. In an article covering the release by Bloomberg, strategies, including Nikolaos Panigirtzoglou at JPMorgan, wrote:
“These temporary signs of the normalization of Bitcoin volatility are encouraging … In our opinion, a potential normalization of Bitcoin volatility here would probably contribute to the revival of institutional interest in the future.”
Based on the declining long-term volatility of Bitcoin, strategies have revised their Bitcoin price target to align with private market investments in gold.
“Given how high the financial investment in gold is, any such removal of gold as an ‘alternative’ currency implies a large increase 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 it is said in the e-mail.
In what has been a benchmark year for Bitcoin, continued support from legacy financial sector operators is very optimistic, with Goldman Sachs and Morgan Stanley both putting in place to deliver products in space.
As time goes on and the price of Bitcoin continues to fly behind the adoption and additional entry into space, expect further revisions of the upward target from JPMorgan and others, which have historically remained far too bearish. Matching private sector investment in gold is just the beginning, as Wall Street will find out.