Monday, May 27, 2024

JPMorgan: Bitcoin is currently trading at a premium to its intrinsic value.

According to JP Morgan, one of the biggest investment banks in the United States of America, the fair price value of Bitcoin should be $38,000. This figure is close to 12% below the current market price. Per JP Morgan analyst predictions, the price of BTC over the long term could touch $150, 000. This is up $4000 from last year’s predictions. Bitcoin prices have gone up 17.3% in the last week alone.

It seems that Bitcoin’s challenge in the next few months is volatile prices. Another challenge is the boom-and-bust patterns which will prevent financial institutions for adopting it easily. As of February 14th, many strategists say that BTC volatility is four times more than gold.

According to Bitcoin’s own reports, the true worth of the coin should be $50,000 taking volatility and differentials into account. At the time of publications, the currency’s price was $43,051.45. Investors seem to take an optimistic view that the market will move forward, after looking at all available metrics. A survey conducted among JP Morgan’s clients indicates that they also believe that Bitcoin will get to $60,000 or higher.

But Jamie Dimon, the bank’s CEO has warned individuals against putting money as investment in cryptocurrencies because of the restricted supply. He also said that these assets don’t have any inherent value. Also, crypto will be subject to stringent regulations in the future. Crypto could also be illegal in some countries across the world, he said in an interview in October 2021.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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