JPMorgan Adjusts Its Bitcoin Target to $130,000, Predicting Strong Institutional Adoption

News
Thu, 04/01/2021 - 19:34
article image
Alex Dovbnya
JPMorgan says that Bitcoin is primed for a boost in institutional adoption due to its declining volatility
JPMorgan Adjusts Its Bitcoin Target to $130,000, Predicting Strong Institutional Adoption
Cover image via stock.adobe.com
Read U.TODAY on
Google News

In its Thursday note, which was covered by Business Insider, JPMorgan states that Bitcoin’s declining volatility is going to spur stronger institutional adoption.

JPMorgan
Image by @jsblokland

Professional investors will feel more comfortable about holding the cryptocurrency as part of their portfolios now that its price action is less mercurial.

Related
JPMorgan Survey Shows What Institutions Think About Crypto

Crowding out gold

Banking giant JPMorgan has estimated that Bitcoin could reach $130,000 in the long-term if it were to match the total private sector investment of gold.

Mechanically, the Bitcoin price would have to rise [to] $130,000, to match the total private sector investment in gold.

The bank sees “big upside” for Bitcoin if it continues to crowd out the yellow metal.

However, it could take several years before there a convergence in volatilities between the two assets.

Bitcoin is up 102 percent year-to-date while gold is down 9 percent. 

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

thecryptobuds