Tuesday, September 27, 2022

JPMorgan Strategists Pegs Bitcoin’s “Fair Value” at $38,000

Strategists at JPMorgan, a U.S based investment bank, evaluate the ‘fair value’ of bitcoin (BTC) to be $38,000 which is about a 12% drop from the current market price. According to Bloomberg, the analysts said this fair market value is based on BTC’s volatility when compared to gold.

The JPMorgan strategists were led by crypto market analyst Nikolaos Panigirtzoglou and the predicted $38,000 fair value of Bitcoin has the volatility that almost ‘quadruples’ in value compared to that of gold. According to the analysts, there is every chance that this fair value could grow and likely hit $50,000 if BTC’s volatility tracks back and comes down to triple the price of gold.

The strategists noted the volatility rate as one big opposition for Bitcoin as time progresses and the ‘boom and bust’ patterns that decrease its adoption. The irregularities tend to increase the risk on security and this, in turn, impedes the acceptance and acquisition of Bitcoin by institutions.

However, the strategists remain unperturbed by this market trend as they are still stuck to the prediction of Bitcoin market price. Nikolaos Panigirtzoglou’s speculative mark for Bitcoin is still at $150,000, although the forecast in 2021, precisely in January was $146,000. 

Feasibility of Bitcoin’s $150,000 Argued

From yesterday till today, the price of BTC has fluctuated between $43,000 to almost $45,000 and is currently at $43,627.83 (BTC/USD) as of the time of writing per data from Binance price feed. Bitcoin’s current market price is just about one-third of its speculative mark while its fair value is just over one-fourth of $150,000.

If eventually achieved, this speculated price for Bitcoin will set it almost at the same position as gold privately held for trading in terms of market capitalization. Notwithstanding the enthusiasm from the investment analysts, banks do not seem to see the possibility of attaining the mark in the nearest future.

Compared to its trend in January, Bitcoin is experiencing better days. It had a rocky start for the year and is still trying to find a balance. In the last few years following the Covid-19 pandemic, one outstanding push for crypto is the large percentage of monetary relief funds that originated from budgetary programs from Central banks, all of which spiked inflation rate and aided the price uplift of Bitcoin to record an all-time high of $68,000 back in November.

With most monetary watchdogs scaling back on these programs, there is the expectation that the growth might slow down, however, BTC’s chances of hitting unprecedented price levels in the near future remain high.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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