According to JPMorgan Chase strategists led by Nikolaos Panigirtzoglou, Bitcoin’s “fair value” should be 12% lower than its actual price. In their opinion, the cryptocurrency is currently overpriced, and its fair value should be around $38,000. According to the Bloomberg report, the mentioned figure is based on the premise that bitcoin is around four times more volatile than gold.
JPMorgan ups its bitcoin prediction to $150,000.
A more interesting observation from the bank’s letter to investors this week is that JPMorgan has upped its long-term price prediction for the leading cryptocurrency. A year ago, the strategists suggested the long-term price for Bitcoin was $146,000, but they have upped this to a new prediction of $150,000. The US bank did not provide a definition or time scale of “long term.” The new price prediction is a level that would put the Bitcoin total market value on par with that of all gold held privately for investment purposes, they added.
Bitcoin’s price nears $44,000.
At the time of writing, the leading cryptocurrency by market capitalization was changing hands for $43,900 with little change over the past 24 hours. The asset hit an intraday high of $44,758 a few hours ago but has started to fall back during the Thursday morning Asian trading session. There is strong resistance at current levels, although prices have increased by 18% over the past seven days. A break above this resistance will result in more around the $47,000 zone. However, if the bears regain control, it could fall back to support at $41.5K. Bitcoin is currently trading down 36.7% from its Nov. 10 all-time high of $69K.