According to Bloomberg, JPMorgan claims that Bitcoin’s fair worth is $35,000, which is 44% less than its current price tag of $63,300. Its calculation is based on a comparison of cryptocurrency volatility to gold volatility.
Bitcoin is currently four times more volatile than precious gold. Despite the fact that there is certainly more upside in store, JPMorgan argues the high prices are “unattractive.” Bitcoin could be overpriced above $60,000, according to billionaire Peter Thiel, who believes the cryptocurrency’s high value is a sign of out-of-control inflation.
With that in mind, the financial giant predicts that the top cryptocurrency will surpass $100,000 in 2022 unless its volatility plummets:
This challenges the idea that a price target of $100k or above, which appears to be the current consensus for 2022, is a sustainable bitcoin target in the absence of a significant decline in bitcoin volatility
JPMorgan CEO Jamie Dimon enraged the cryptocurrency community last month when he called Bitcoin “worthless.” Crypto will continue to rise in 2022, according to JPMorgan, with a moderate 15% growth predicted.
Despite this, the banking behemoth urges investors to avoid the volatile asset class in favour of real estate. JPMorgan expects both residential and commercial property prices to rise as economic growth projections improve.
