The Strategist

JPMorgan states fair value of Bitcoin

02/10/2022 - 06:42

JPMorgan strategists estimated the fair value of Bitcoin at $38,000. This is 14% less than the cryptocurrency's current market price.

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Strategists at investment bank JPMorgan Chase estimated the fair value of Bitcoin at $38,000, Bloomberg reports.

In calculating the fair value of Bitcoin, they assumed that it is about four times more volatile than gold, Bloomberg wrote, citing a research note it reviewed. In a scenario where the difference in volatility is reduced to three times, Bitcoin's fair value rises to $50,000, the analysts calculated.

The long-term target for Bitcoin's value is $150,000, according to the head of the analyst group. When that price is reached, the total market value of Bitcoin will equal the value of all privately held gold for investment purposes. In early 2021, the analyst estimated the coin’s value target at $146,000. 

Strategists also said that the January correction in the cryptocurrency market is less of a capitulation than the situation last May, when Bitcoin lost 50% of its value.