United States, April 7, 2021 /AlexaBlockchain/ – A new report from JP Morgan suggests that decreasing volatility in Bitcoin prices would lead to greater institutional interest from investors.
JP Morgan’s global markets strategy report said: “Assuming the current drift downwards in bitcoin volatility that appears to have started a month ago continues over the coming months, there would be positive implications both in terms of institutional adoption going forward and in terms of bitcoin’s fair value.”
- JP Morgan Analysts said that one major factor holding back institutional adoption of bitcoin and other cryptocurrencies is their volatility.
- “The 3-month realised volatility for bitcoin peaked at 91% on Feb 23rd and has subsided to 86% since then,” they said. “The 6-month realised volatility appears to be stabilising at around 73%.”
- On the basis of Bitcoin’s declining long term volatility, the investment bank revised its Bitcoin price target to align with private market investment in Gold.
- “Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” JP Morgan said
- It also revised its Bitcoin target saying that the Bitcoin price would have to rise [to] $130,000 to match the total private sector investment in gold.