After plunging 17% in January, Bitcoin recovered sharply in February, but analysts at JPMorgan believe it should be a fair price of $38,000.
In a report on Tuesday, JPMorgan strategist Nikolaos Panigirtzoglou said that since bitcoin is about four times more volatile than gold, the fair price of bitcoin should be higher than current prices (at the time of writing, bitcoin was around $43,000). ) fell around 12%, or $38,000.
If bitcoin’s volatility narrows to three times that of gold, bitcoin’s fair price could rise to $50,000, the strategist said.
They believe that the biggest challenge for Bitcoin going forward is its volatility, which discourages some institutions from holding Bitcoin.
However, JPMorgan remains bullish on Bitcoin in the long term. In its report, the bank projected a long-term price target for bitcoin of $150,000, up from its January 2021 forecast of $146,000.
As of writing, Bitcoin has risen to $44,300 and is gradually approaching the $45,000 mark.