JPMorgan called the "fair price" of bitcoin: $126 thousand by the end of the year

JPMorgan called the "fair price" of bitcoin: $126 thousand by the end of the year
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According to analysts at the investment giant JPMorgan, the real or so-called "fair" price of bitcoin today should be about $ 126 thousand. This is significantly higher than the current market quotations, which at the end of August amount to approximately $ 110 thousand. This conclusion was made based on an analysis of volatility and a comparison of bitcoin with a traditional protective asset — gold.

Despite JPMorgan CEO Jamie Dimon's skepticism about cryptocurrencies, the bank is actively analyzing the digital asset market. Managing Director Nikolaos Panigirtzoglou, in particular, noted that the decrease in bitcoin volatility to 30% (against 60% at the beginning of the year) paved the way for a more confident entry of institutional investors.

The comparison with gold has become a key element of the calculation: bitcoin's volatility ratio against gold has dropped to a historic low of 2.0. This makes both assets similar in risk profile, which means they are comparable from an investment point of view.

The bank also notes the important role of exchange companies such as Strategy and Metaplanet, which include bitcoin in their assets. These companies are included in major indexes, such as the S&P 500, and receive stable capital inflows through index funds. This helps to reduce the instability of the BTC exchange rate and makes it more attractive for long-term investments.

At the end of August, the total volume of bitcoins on the balance sheet of public companies exceeded $109 billion, which is about 5% of the total number of coins issued. This level of institutional interest also supports confidence in price growth.

JPMorgan emphasizes that the current bitcoin exchange rate does not reflect its real investment potential. Analysts believe that the fair price of BTC should be above $120,000 today and reach $126,000 by the end of 2025, while maintaining current dynamics.

Earlier, in May, the bank had already noted that bitcoin has advantages over gold due to the growing interest from large investors, technological features and limited issue. At the same time, the profitability of gold for the year was about 30%, while bitcoin showed an increase of less than 18%, which in the future only increases the potential for its sharp growth.

Thus, bitcoin is becoming increasingly recognized by traditional financial institutions, despite conflicting views on its value. Reduced volatility, growing interest from corporations and funds, as well as institutional investments are creating favorable conditions for the continued growth of the cryptocurrency exchange rate.