JPMorgan estimates ‘fair value’ of Bitcoin at $38K

Amid Bitcoin (BTC) posting a important terms betterment since aboriginal February, JPMorgan analysts suggested that the “fair value” of BTC is really little than its marketplace terms connected Tuesday.

The existent fair-value level for BTC is astir $38,000, JPMorgan strategists said successful the bank’s latest capitalist enactment published connected Tuesday. Led by JPMorgan crypto marketplace expert Nikolaos Panigirtzoglou, the strategists estimated the “fair value” based connected Bitcoin being astir 4 times arsenic volatile arsenic gold.

The “fair value” of Bitcoin would emergence to $50,000 successful a script wherever the volatility level narrows to 3 times, the strategists suggested, adding:

“The biggest situation for Bitcoin going guardant is its volatility and the roar and bust cycles that hinder further organization adoption.”

At the clip of writing, BTC traded astir $43,000, oregon 12% up from the “fair value” suggested by JPMorgan. Bitcoin antecedently was inching adjacent to $45,000, reaching astir $44,900 connected Tuesday, according to data from CoinGecko.

While being bearish connected Bitcoin’s existent “fair value,” JPMorgan’s strategists inactive forecast that BTC would surge acold supra $100,000 1 day. According to the report, Panigirtzoglou’s semipermanent theoretical people for Bitcoin stands astatine $150,000, up from $146,000 forecasted successful January 2021.

Related: Wall Street inactive not convinced connected Bitcoin $100K this year: JPMorgan survey

JPMorgan’s analysts besides noted that Bitcoin’s terms correction successful January looks “less similar a capitulation” than the 1 recorded successful May 2021, erstwhile BTC plummeted 50% from supra $60,000 to astir $33,000. However, immoderate BTC metrics similar futures unfastened involvement and reserves connected exchanges are pointing to a “more long-standing and frankincense much worrisome presumption simplification trend” that began successful November, the strategists reportedly added.

The strategists antecedently released a akin study successful November, asserting that Bitcoin’s “fair value” was astir $35,000, oregon astir 45% little than its marketplace terms of $63,281.