Strategists at Wall Street investment bank JPMorgan feel that Bitcoin is overpriced, and its actual value is much less than its present value. According to JPMorgan Chase strategists led by Nikolaos Panigirtzoglou, Bitcoin’s “fair value” must be 12% lower than its current value, and it should be around $38,000.
JP Morgan has based this calculation because BTC is four times more volatile than gold. If the volatility is tapered down to three times, the fair value price would increase to around $50,000, stated the strategists.
JP Morgan predicts long term BTC long term price at 150K
JPMorgan: Our long-term price target for #Bitcoin is $150,000
— Blockworks (@Blockworks_) February 9, 2022
Experts feel that the biggest challenge for BTC from further institutional adoption is its extreme volatility and the boom and bust cycles.
Even more interesting is the revision by JPMorgan of the long-term predictions for BTC. Strategists had earlier predicted the long-term values of BTC as $146,000, but they have upped this to a new forecast of $150,000.
If BTC reaches this level, it will peg it at par with all gold held privately for investment purposes.
The analysts also added that the tanking of values in January could not be equated with the events in May 2021. Last month, Bitcoin prices declined by 22%, from almost $47K to around $36.5K.
It is ironic that despite the bearish climate, Major Wall Street banks are advising investors about investing in crypto-assets and predicting the prices. Yet, when reports last came in, Bitcoin was changing hands for $43,900 with little change over the past 24 hours.
BTC is facing a solid resistance at present price levels, although the prices have surged by 18% over the past week. If BTC can break this resistance level, it can slip past 47K. However, if it fails, it can fall to support at $41.5K.