Bitcoin has won a fair share of Wall Street supporters this year amid a bullfight that has risen to around 500%.
The price of bitcoin hit highs of just over $ 60,000 on bitcoin last month, before falling slightly, but has since regained lost ground. Meanwhile, the wider cryptocurrency market has grown to nearly $ 2 trillion – boosted by decentralized financing tokens (DeFi).
Now, analysts at Wall Street banking giant and former bitcoin skeptic JPMorgan have said that bitcoin could rise to $ 130,000 in the long run if it continues to see its volatility converge with that of gold.
The price of bitcoin has risen in the last six months, rising to about $ 60,000 on bitcoin.
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“Given how large the financial investment in gold is, any such agglomeration of gold as an ‘alternative’ currency implies a big increase for bitcoin in the long run,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note to clients this week. This one.
The bank found that a six-month measure of bitcoin volatility appears to be stabilizing at around 73% – suggesting “temporary signs of the normalization of bitcoin volatility” that could help “revive” the interest of institutional investors.
High volatility “acts like a wind in the face of subsequent institutional adoption,” according to JPMorgan.
The price of bitcoin has risen as institutional investors, including London-based asset manager Ruffer and insurance giant MassMutual, have bought bitcoin – Elon Musk’s Tesla, to complete a series of profile bitcoin bets.
The price of bitcoin has risen from about $ 10,000 on bitcoin to about $ 60,000 as a result, but JPMorgan believes it could have another way to run.
“Mechanically, the price of bitcoin should rise [to] $ 130,000 to match total private sector investment in gold, “JPMorgan analysts wrote.
The price of bitcoin broke $ 60,000 on bitcoin in March before settling just below psychological … [+]
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Meanwhile, the bitcoin community is blushing after the sensational 2021 bitcoin exchange rate.
“After a stellar performance in the first quarter that saw the crypto king hit a record high of $ 61,700, bitcoin enters April leading a seemingly sustained cryptocurrency market,” said Paolo Ardoino, bitcoin’s chief technology officer at cryptocurrency exchange. Bitfinex said in e-mail comments, pointing to this week’s PayPal announcement that it will soon allow users to spend bitcoin and a handful of other cryptocurrencies on the 29 million merchants worldwide.
“As PayPal’s recent announcement demonstrates, the inherent volatility of digital tokens is not a barrier to their use in payments. This rally could herald the first significant entry of bitcoin into the old financial system and credit card industry.”