Why JPMorgan is aiming for $130,000 on Bitcoin

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sets a long-term price goal of 130,000 for Bitcoin (BTC), hoping that the capitalization of the queen of cryptocurrencies catches up with the amount invested in by institutional investors.

The bank shows the theoretical target by assuming that the capitalization of catches up to the amount invested in by institutional investors, i.e. outside the Central Bank. According to JPMorgan, there is little question that rivalry with as a “alternative” currency will continue in the coming years.

However, the bank warns that the volatility of each asset class is essential in terms of portfolio risk management for most institutional investors. In fact, the greater an asset class’s volatility, the more capital that the asset class consumes. Without a convergence of volatility, it is impractical to expect allocations by institutional investors to match those of gold.

sees declining currency volatility as an added benefit for institutional investors. At the time of publishing, the share price has surpassed $ 60,000. The price is still extremely volatile, but this is diminishing. That is good news for conventional investors who would rather not in a risky asset that has dropped 30% in a week.

anticipates the price of 130,000 as it devours the sector. This is particularly relevant to investors. The market currently accounts for approximately 9.8 percent of the overall market.

The bank went a step further in a recent paper. If takes over the entire market as a speculative asset, the price per would be well above $ 540,000. That is not a hard price target for the bank, but rather a simple estimate based on the current gold market divided by the maximum number of available (21 million).

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