JPMorgan analysts, led by Nikolaos Panigirtzoglou, predict that Bitcoin's current price, deemed 'very low,' may rise to $126,000 by year-end.
Decline in Bitcoin Volatility
Bitcoin's volatility, which began the year at around 60%, has fallen to around 30%. This decline is pushing Bitcoin's fair value higher. Panigirtzoglou stated, 'Yes, we expect this rise by the end of the year.'
Impact of Corporate Treasuries
Analysts compared the trend of corporate treasuries accumulating Bitcoin to suppress volatility with central banks reducing bond market volatility after 2008. Corporate treasuries reportedly hold more than 6% of Bitcoin's total supply.
Growth Potential and Comparison to Gold
Reduced volatility is viewed as a significant advantage for institutional investments. Analysts estimate that Bitcoin's risk capital consumption ratio compared to gold has fallen to a record low of 2.0. At this rate, Bitcoin's approximately $2.2 trillion market capitalization should increase by 13%, bringing it closer to gold's private investment value and pushing the price to $126,000.
Thus, JPMorgan's forecasts for Bitcoin's future deserve attention considering the changes in market dynamics and the impact of corporate investments.
