JPMorgan set the target price for Bitcoin at $ 130,000
target price for Bitcoin : Wall Street banking giant JPMorgan predicted in a recent note that reducing bitcoin volatility would attract institutional investors, and in the long run the cryptocurrency would be worth $ 130,000.
According to Magnates Finance, JPMorgan, one of the world’s largest investment banks, noted in the memo that setting a $ 130,000 target for the price of bitcoin on paper should be considered a long-term goal. Bitcoin, the world’s largest cryptocurrency, currently trades close to $ 58,000 and has a total market value of more than $ 1.08 trillion.
The recent decline in bitcoin fluctuations has attracted institutional investors, according to a research note from GPSMorgan. The bank stressed that the price of $ 130,000 for Bitcoin would be equal to the total private sector investment in gold.
JPMorgan strategist Nikolaos Panigirtzoglou published a research note in February 2021 stating that bitcoin fluctuations are a major problem for large organizations. The bank had previously set a long-term forecast for the price of Bitcoin of $ 146,000.
JPMorgan said in a new note that if it has set a long-term target price of $ 130,000 for Bitcoin, it is because the cryptocurrency will fluctuate with gold.
The note states:
Given the large volume of financial investment in gold, any mass exodus of gold as an alternative currency would mean a sharp rise in bitcoin in the long run. Convergence in bitcoin and gold fluctuations is unlikely to happen any time soon; This is probably a multi-year trend. This means that the theoretically set target price of $ 130,000 for Bitcoin should be considered a long-term target.
Institutional investors around the world have begun exploring bitcoin as an alternative to gold. Although the total market value of bitcoin is relatively lower than that of gold, there has been a steady outflow of gold-related investment products over the past few months, with strong inflows into the world’s largest digital currency. Bitcoin recently exceeded 10% of the value of the extracted gold market.
“Bitcoin and other digital currencies have established themselves as exciting asset options over the past 10 years,” Ray Dalio, managing director of the American hedge fund and founder of Bridgewater Associates, said in a post on Reddit.
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