Strategists at financial services giant JPMorgan are raising doubts that the price of Bitcoin (BTC) could hit six figures over the coming months, according to a Bloomberg report.
The report says that the current consensus predicting Bitcoin will reach at least $100,000 in 2022 can only come true if BTC’s volatility were to fall significantly.
“This challenges the idea that a price target of $100k or above, which appears to be the current consensus for 2022, is a sustainable Bitcoin target in the absence of a significant decline in Bitcoin volatility. Digital assets are on a multiyear structural ascent, but the current entry point looks unattractive.”
JPMorgan says that the fair value of Bitcoin should be around $35,000. Bitcoin is currently trading at $63,000, according to CoinGecko.
The financial services giant also says that Bitcoin’s volatility is four times that of gold, but if BTC’s volatility were to reduce by half then $73,000 would be a “reasonable” price target.
For the wider digital assets class, JPMorgan strategists are forecasting that they will appreciate by 15% next year, beating hedge fund and real estate returns. However, the wild swings that digital assets experience lowers their appeal, according to the strategists.
After Bitcoin hit a new all-time high in late October, JPMorgan said BTC’s rise was due to concerns over inflation.
“…we believe the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs into Bitcoin funds since September.”
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/SimpleB
