Bitcoin has gained its fair share of Wall Street supporters this year amid a bull run that has seen it soar around 500%.
Bitcoin price peaked at just over $ 60,000 per bitcoin last month before slipping back slightly, but has since overtaken lost ground. Meanwhile, the broader cryptocurrency market has soared to nearly $ 2 trillion, boosted by decentralized financing (DeFi) tokens.
Now, analysts from 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 converge its volatility with that of gold.
Bitcoin price has skyrocketed over the past six months, rising to around $ 60,000 per bitcoin.
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“When you consider the size of the financial investment in gold, such displacement of gold as an ‘alternative’ currency represents a great long-term benefit to bitcoin,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note this week. to customers.
The bank found that a six-month measure of bitcoin volatility appeared to stabilize at around 73% – indicating “preliminary signs of normalization of bitcoin volatility” that could help “revive” interest from institutional investors.
High volatility “acts as a headwind to further institutional adoption,” said JPMorgan.
Bitcoin price has skyrocketed as institutional investors including London-based asset manager Ruffer and insurance giant MassMutual have bought into bitcoin – with Elon Musk’s Tesla rounding out a series of high-profile bitcoin bets.
Bitcoin price has soared from around $ 10,000 per bitcoin to around $ 60,000 as a result, but JPMorgan thinks it may have one more way to run.
“Mechanically, the bitcoin price should rise [to] $ 130,000 to match the private sector’s total investment in gold, ”JPMorgan analysts wrote.
Bitcoin price broke $ 60,000 per bitcoin in March before settling just below Psychology [+]
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The bitcoin community, meanwhile, is feeling flush after bitcoin’s sensational 2021 run.
“After a stellar first-quarter performance in which the cryptocurrency king hit a record high of $ 61,700, bitcoin is entering a seemingly vibrant cryptocurrency market in April,” said Paolo Ardoino, bitcoin’s chief technology officer in the British Virgin Islands. cryptocurrency exchange Bitfinex, said in email responses, noting PayPal’s announcement this week that it will soon allow users to spend bitcoin and a handful of other cryptocurrencies among its 29 million merchants worldwide.
As the recent announcement from PayPal shows, the inherent volatility of digital tokens is not a barrier to their increasing use in payments. This rally could potentially herald the first meaningful encroachment of bitcoin in the legacy financial system and credit card industry.