JP Morgan says that bitcoin’s volatility has decreased in recent weeks, making the cryptocurrency more appealing to institutional investors. The investment bank has also revised its bitcoin price target to $130,000.
Increased Institutional Adoption, New Price Prediction for Bitcoin
JPMorgan said last week that bitcoin’s price volatility has been declining in recent weeks, noting that this has made the cryptocurrency more appealing to institutional investors seeking low-correlation assets to diversify their investment portfolios.
Bitcoin’s high volatility has been one of the biggest barriers to BTC adoption by institutions, JPMorgan explained, adding that it now sees signs that the cryptocurrency’s volatility is normalizing.
“The recent change in the correlation structure of bitcoin relative to traditional asset classes” will likely increase the institutional adoption of bitcoin, JPMorgan elaborated. Based on the current gold price of $1,700 per troy ounce, the bank says, “Mechanically, the bitcoin price would have to rise [to] $130,000, to match the total private sector investment in gold.”