Analysts from the financial giant JPMorgan have stated that the fair price of Bitcoin in the market should be $126,000, which is 13% higher than its current value.
This is reported by Finway
Bitcoin is gradually catching up to gold in investment attractiveness
According to the bank’s estimates, the current price of the first cryptocurrency is “too low” compared to gold due to the historical decline in Bitcoin’s volatility. JPMorgan experts emphasize that the asset’s volatility has decreased from nearly 60% at the beginning of the year to around 30%, setting a historical low. This makes Bitcoin more attractive to institutional investors and opens up space for further growth in its value.
“Yes, this is the outlook we highlighted in our note, and we expect it to materialize by the end of the year,” said the bank’s managing director Nikolaos Panigirtzoglou.
According to JPMorgan analysts, if by the end of 2024 Bitcoin was trading at $36,000 above its fair value, its current price is now $13,000 lower, highlighting the potential for growth to $126,000.
The impact of corporate purchases and passive investments
A significant role in the growth of Bitcoin’s value belongs to corporate purchases. Currently, companies own over 6% of the total Bitcoin supply, which positively affects the reduction of volatility. The bank draws parallels between the current situation and the quantitative easing programs after 2008, when central banks bought bonds to stabilize the markets.
The influence of passive investment flows is also significantly increasing: the inclusion of companies dealing with Bitcoin in global stock indices leads to new investment inflows. For example, after the addition of Strategy (ex-MicroStrategy) to key benchmarks, as well as the inclusion of Metaplanet in the FTSE All-World Index, investment volumes have increased.
Competition among corporate treasuries is also intensifying. KindlyMD has applied to raise up to $5 billion in investments, declaring Bitcoin as its primary reserve asset. The BSTR structure, led by Adam Back, plans to become the second-largest corporate holder of Bitcoins after Strategy, competing with Marathon Digital.
All these factors – corporate accumulation, index investments, and reduced volatility – strengthen Bitcoin’s position in the market. According to experts, the riskiness of the asset is decreasing, and its risk-adjusted return metrics are approaching those of gold.
According to TradingView, at the time of preparing this material, Bitcoin was trading at $110,100.
According to previous forecasts by Bitwise, by 2035 the price of Bitcoin could reach $1.3 million.