Analysts at JPMorgan called the fair price of Bitcoin $35,000. If the volatility of the leading cryptocurrency halves, the bank’s experts consider the goal of $73,000 to be reasonable, Bloomberg writes.
JPMorgan predicted the growth of digital currencies in 2022 at 15% per annum, which is higher than the indicators of real estate (12.5%), hedge funds (7.5%) and stocks (5%).
According to analysts, the high volatility of cryptocurrencies makes them less attractive to investors. The bank is confident that digital currencies cannot be recommended as a key asset. According to the report shared by the bank:
“This casts doubt on the idea that Bitcoin’s target of $100,000 or higher, which has become the generally accepted forecast for 2022, is achievable without significantly lowering volatility. Digital assets are on a multi-year uptrend, but the current entry point looks unattractive.”
In October, JPMorgan analysts called fears about inflation, and not the excitement over the first Bitcoin futures ETF, the main driver of the rally in the first cryptocurrency.
Earlier, the head of JPMorgan Jamie Dimon criticized once again digital gold, but admitted the clients of the financial holding think otherwise.