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JPMorgan Thinks Bitcoin Is Overvalued At $44,000

Key Takeaways Analysts at JPMorgan have estimated that Bitcoin’s “fair value” is $38,000, about 12% lower than its current price of $44,000. The strategists noted that Bitcoin’s volatility is 300% higher than gold’s. JPMorgan has given a long-term price target of $150,000 for the asset. Share this article Analysts at JPMorgan Chase have estimated that the “fair value” for Bitcoin is $38,000, suggesting that the asset is overvalued by about 12%. JPMorgan Shares Bitcoin Valuation Models Despite its recent drop from an all-time high of over $69,000, some analysts at JPMorgan believe Bitcoin is still overvalued at its current price of around $44,000. Strategists at the investment banking giant, led by Nikolaos Panigirtzoglou, have the “fair value” of Bitcoin at around $38,000, Bloomberg reported today. Panigirtzoglou and his team came to the finding after noting that Bitcoin is about 300% more volatile than gold. In a research paper published Tuesday, analysts claimed that Bitcoin’s fair value and volatility were inversely related. In other words, according to their statistics, if Bitcoin were less volatile, the real value price would rise. The analysts suggested that if Bitcoin’s volatility differential against gold narrowed to 200%, the asset’s fair value would be $50,000. The strategists argued that Bitcoin’s biggest hurdle going forward is “volatility and the boom and bust cycles,” characteristics they say have limited institutional adoption. Panigirtzoglou gave a long-term price target of $150,000 for the number one cryptocurrency, up slightly from the $146,000 target he gave in January 2021. JPMorgan has been relatively conservative when it comes to crypto predictions in recent months. In June 2021, weeks after Bitcoin corrected from its April high of $64,000, Panigirtzoglou called for lows of around $26,000 and said its fair value was between $24,000 and $36,000. Bitcoin memorably hit a local low of around $29,000 over the summer before surging to $69,000 in November. Since then, it has struggled to maintain highs. Several factors contributed to what has been a rough few months for the crypto market, including fears of Omicron and a possible Russian war, increased correlation with traditional assets and the Federal Reserve’s planned rate hikes for 2022. In the research note, JPMorgan analysts pointed out that on the open interest of futures and reserves on exchanges as evidence that the latest market decline could trigger a “prolonged and therefore more worrying trend of position reduction” than the market observed in May 2021. scenario for Bitcoin, other analysts have shown more confidence in the asset in recent weeks. ARK Invest, the wealth management company run by Bitcoin believer Cathie Wood, said Bitcoin could reach $1 million in a report last month by 2030. Analysts said Bitcoin has seen a surge in long-term investors and adoption is growing at a rapid pace. . The same report claimed that Ethereum could become a $20 trillion network by the end of the decade, bringing the price of ETH to about $180,000. Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies. Share this article The information on or accessible through this website was obtained from independent sources believed to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness or accuracy of any information contained on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not provide personal investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete or inaccurate information. You should never make an investment decision about an ICO, IEO or other investment based on the information on this website, and you should never interpret or otherwise rely on the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO or other investment. We do not accept compensation in any form for analyzing or reporting ICOs, IEOs, cryptocurrency, currencies, tokenized sales, securities or commodities. See full terms and conditions. Bitcoin to $1M, Ethereum to $180,000 by 2030: ARK Report In a new research report, US investment firm ARK Invest has shared bold price predictions for Bitcoin and Ethereum before the end of this decade. 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