JPMorgan, the world’s largest investment bank, has revised its long-term price forecast for bitcoin. The revised target for bitcoin is USD 38K. The revised target is roughly one-fourth (nearly 26 percent) of the previously determined target of USD 146K. The institution predicted a long-term price of USD 146K when bitcoin was trading at a price near USD 60K. One of the most crucial causes for this shift is the heightened volatility that the asset has seen recently.
On the price target, JPMorgan stated in a note that their prior prediction that the bitcoin to gold volatility ratio would decline to roughly 2x by the end of the year appears to be a fantasy. Based on a 4x volatility ratio of bitcoin to gold, their fair value for bitcoin is 1/4th of USD 150,000, or USD 38,000.
According to JPMorgan volatility in cryptocurrencies including bitcoin is one of the factors towards revised lower targets. The recent drop in cryptocurrency values was described as a number of causes. Some people speculated that the Federal Reserve’s recent comments would have an impact on the crypto markets.