JPMorgan lowered its estimate of bitcoin's fair price to 38,000
JPMorgan, one of the world's largest financial institutions, has drastically changed its view on the price bitcoin will reach in the long term. While JPMorgan was optimistic last year when it estimated the number at nearly $150,000, it has lowered its estimates because of the situation the market has faced this year.
The new price of $38,000, about a quarter of the previously calculated number, was estimated in a different context regarding gold and bitcoins and market volatility. JPMorgan stated this in a note:
Our previous prediction that the bitcoin-to-gold volatility ratio would fall by about half later this year seems unrealistic. Our fair bitcoin value, based on a bitcoin-to-gold volatility ratio of about a factor of 4, would be 1/4 of $150,000, or $38,000.
