JPMorgan, in an email note released to customers on Thursday, cited declining Bitcoin volatility as positive for institutional interest in the asset. In an article about the release of Bloomberg, strategists including Nikolaos Panigirtzoglou at JPMorgan wrote:
“These tentative signs of bitcoin volatility normalization are encouraging … In our view, a possible normalization of bitcoin volatility from here would likely help revitalize institutional importance going forward.”
Based on Bitcoin’s declining long-term volatility, the strategists have revised their Bitcoin price target to be in line with private market investments in gold.
“Considering how big the financial investment in gold is, such a displacement of gold as an ‘alternative’ currency implies a great long-term benefit to bitcoin … Mechanically, the Bitcoin price should rise. [to] $ 130,000 to match the private sector’s total investment in gold, ” JP Morgan reportedly said in the email.
In what was a milestone for Bitcoin, the continued support from incumbents in the old financial sector is very optimistic, with Goldman Sachs and Morgan Stanley both submitting to offer products in the space.
As time passes and the Bitcoin price continues to fly thanks to additional adoption and entry into space, expect additional upward revisions to JPMorgan and others’ price target, which have historically remained far too bearish. Matching private investment in gold is just the beginning, as Wall Street will discover.