For the JPMorgan Chase & Co, O bitcoin it can be worth US $ 130 thousand with the drop in currency volatility, making it increasingly attractive to institutions seeking to diversify their investment portfolio.
The bank, which previously took a skeptical stance towards cryptocurrency, says that long-term high value could happen if bitcoin continues to converge with gold’s volatility.
According to the bank, the purchase of bitcoins by institutions “will probably arise from the recent change in the cryptocurrency’s correlation structure in relation to traditional asset classes”.
The biggest barrier for them to buy the asset is due to the high volatility of the market, which exploded in 2020.
For JPMorgan, “high volatility acts as an obstacle to greater institutional adoption” and, therefore, with a normalization at these levels, the interest of professional investors will be “reinvigorated”.
This all happened at the same time that the value of bitcoin more than tripled, especially as a result of the heavy bets of billionaire Elon Musk on cryptocurrencies, which raised his market value.
“Considering how big the financial investment in gold is, any exclusion of gold as an ‘alternative’ currency implies a major advantage for bitcoin,” wrote the analysts.
The price of bitcoin has gone up from $ 10,000 to about $ 60,000 – and JPMorgan still sees a window to much greater growth in the long run.
“Mechanically, the price of bitcoin would have to go up [para] $ 130,000 to match the total private sector investment in gold, “he said.
The future of bitcoin, for JPMorgan, is in the hands of gold.
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