JP Morgan strategist and bitcoin expert Nikolaos Panigirtzoglu wrote in the latest research note to clients that weak institutional demand could drag the price of bitcoin below $30,000.
Based on the volatility ratio of bitcoin to gold, the JP Morgan analyst predicts that bitcoin will continue to trade between $24,000 and $36,000 in the medium term. “Fair value for bitcoin would be $145k or 1/4th of $36k based on gold’s volatility ratio of approximately x4 to bitcoin. The fair value of bitcoin for gold of around x6 based on bitcoin’s current volatility ratio would be $145k. Or 1/6th of $24k. Thus we see a fair value range of $24k to $36k in the medium term,” the note reads.
Panigirtzoglu said that JPMorgan still sees $145,000 price mark As a long-term “theoretical target” for the price of BTC, “the convergence of bitcoin’s volatility to gold and the gold equivalent of bitcoin allocation in investor portfolios.”
“$145k is the price of bitcoin which at the moment would equate to a private sector holding of gold for investment purposes of approximately $2.7tr. Needless to say, volatility or complete convergence or parity of allocations is unlikely in the near future. , “The strategist wrote, adding:
“The long term signal remains problematic, as it has not yet turned short. It will still lead to a decline in the price towards the $26k level before long term momentum will signal capitulation.”
Panigirtzoglou noted that institutional investors appear reluctant to buy in the fall following a major crypto crash on May 19. “We note that simply increasing volatility, especially relative to gold, is a barrier to further institutional adoption because it reduces the attractiveness of digital gold versus traditional gold in institutional portfolios,” the strategist said. JPMorgan previously suggested that large institutional investors were BTC dumping in favor of gold Bitcoin reached a five-month low near $ 30,000.
On Monday, Peter Brandt, a veteran financial analyst and trader, Questioned whether there is a possibility of a surge in the price of bitcoin In the near future. At the time of writing, bitcoin is Business According to data from CoinGecko, it is down by almost 1% over the past 24 hours to $36,638. The cryptocurrency has lost around 37% in the past 30 days, but is still up 286% over the past year.