Analysts at JPMorgan Chase have dropped their long-term Bitcoin price prediction from $150,000 to $38,000 after the price of the Bitcoin fell from a $67,000 all-time high to a $34,000 low before reclaiming. Analysts anticipated that Bitcoin price would approach $150,000 in the long run, if the cryptocurrency’s volatility decreased and institutional investors preferred bitcoin over gold. Analysts led by Nikolaos Panigirtzoglou stated that they consider Bitcoin to be a scarce product that is increasingly contesting with gold for investors’ preference as an inflation hedge. According to Business Insider, the experts now consider their previous price projection ‘unrealistic.’ “Our previous projection that the bitcoin to gold volatility ratio will fall to around 2x later this year seems unrealistic. Our fair value for bitcoin based on a volatility ratio of bitcoin to the gold of around 4x would be 1/4th of $150,000, or $38,000.“ JPMorgan assumed that Bitcoin would continue to compete with gold, especially as millennials gain power in the investment world. According to analysts, there is a large financial investment in gold, and any such crowding out of gold as an alternative currency indicates tremendous upside for Bitcoin. The researchers warned that for BTC to reach $150,000, its volatility would have to drop dramatically. The flagship cryptocurrency’s recent collapse from a new high to a low of $34,000 before recovering appears ...
