JPMorgan, in an email note issued to clients on Thursday, mentions that declining Bitcoin volatility is positive for institutional interest in the asset. In an article announcing the release by Bloomberg, strategists including Nikolaos Panigirtzoglou at JPMorgan wrote:
“These preliminary signs of Bitcoin volatility normalization are encouraging … In our view, a potential normalization of Bitcoin volatility from here is likely to help bolster institutional interest in the future.”
Based on the declining long-term volatility of Bitcoin, the strategists have revised their price target for Bitcoin to accommodate private market investment in Gold.
“Considering how big the financial investment in gold is, it means that any gold that is supplanted as an ‘alternative’ currency is a big rise for bitcoin in the long run … Mechanically, the Bitcoin price should rise. [to] $ 130,000 to cover the total investment in gold in the private sector, ” JP Morgan apparently said in the email.
In what has been an important year for Bitcoin, the continued support of those established in the legacy financial sector has been very positive, with Goldman Sachs and Morgan Stanley both submitting to offer products in space.
As time passes and the Bitcoin price continues to fly due to additional acceptance and access to space, you can expect additional price changes from JPMorgan and others, which have historically remained completely clumsy, to be upward changes. Investing in gold in the private sector is just the beginning, as Wall Street will find out.