JPMorgan Predicts Long-Term Bitcoin Price of $150K — Outlines Challenges Ahead

JPMorgans Bitcoin Price Prediction

Global investment bank JPMorgan has revealed its prediction for the long-term price of bitcoin as well as the cryptocurrencys fair value.

JPMorgan Chase & Co.s strategists, led by Nikolaos Panigirtzoglou, wrote in a research note published Tuesday that their long-term theoretical target for bitcoin is $150K, up from $146K predicted last year.

At this level, bitcoins total market value would be on par with that of all gold held privately for investment purposes, they explained.

The analysts clarified that bitcoins “fair value” is around $38K, up from $35K estimated last year.

They calculated the coins fair value based on bitcoin being roughly four times as volatile as gold, adding that if the volatility differential narrows to three times, then the fair value of BTC would rise to $50K.

The JPMorgan strategists wrote:

The biggest challenge for bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption.

At the time of writing, the price of bitcoin is $43,855 based on data from Bitcoin.com Markets. BTC is up almost 19% over the past seven days and almost 5% in the last 30 days.

Meanwhile, a JPMorgan client survey shows that the majority of respondents expect bitcoins price to reach $60K or more this year. The firm currently offers some crypto investments to clients.

Nonetheless, JPMorgan CEO Jamie Dimon continues to warn people about investing in crypto, citing that the assets have no intrinsic value. He called bitcoin worthless in October last year, questioning its limited supply.