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Amid Bitcoin (
$60,631.00 ) (BTC) posting a significant price recovery since early February, JPMorgan analysts suggested that the “fair value” of BTC is actually lower than its market price on Tuesday.
The current fair-value level for BTC is around $38,000, JPMorgan strategists said in the bank’s latest investor note published on Tuesday. Led by JPMorgan crypto market analyst Nikolaos Panigirtzoglou, the strategists estimated the “fair value” based on Bitcoin ( $60,631.00 ) being nearly four times as volatile as gold.
The “fair value” of Bitcoin ( $60,631.00 ) would rise to $50,000 in a scenario where the volatility level narrows to three times, the strategists suggested, adding:
“The biggest challenge for Bitcoin ( $60,631.00 ) going forward is its volatility and the boom and bust cycles that hinder further institutional adoption.”
At the time of writing, BTC traded around $43,000, or 12% up from the “fair value” suggested by JPMorgan. Bitcoin ( $60,631.00 ) previously was inching close to $45,000, reaching around $44,900 on Tuesday, according to data from CoinGecko.
While being bearish on Bitcoin ( $60,631.00 ) ’s current “fair value,” JPMorgan’s strategists still forecast that BTC would surge far above $100,000 one day. According to the report, Panigirtzoglou’s long-term theoretical target for Bitcoin ( $60,631.00 ) stands at $150,000, up from $146,000 forecasted in January 2021.
Related: Wall Street still not convinced on Bitcoin ( $60,631.00 ) $100K this year: JPMorgan survey
JPMorgan’s analysts also noted that Bitcoin ( $60,631.00 ) ’s price correction in January looks “less like a capitulation” than the one recorded in May 2021, when BTC plummeted 50% from above $60,000 to around $33,000. However, some BTC metrics like futures open interest and reserves on exchanges are pointing to a “more long-standing and thus more worrisome position reduction trend” that began in November, the strategists reportedly added.
The strategists previously released a similar report in November, asserting that Bitcoin ( $60,631.00 ) ’s “fair value” was around $35,000, or about 45% lower than its market price of $63,281.
