The drop in bitcoin price volatility could attract new institutional investors and cause the cryptocurrency's value to reach $ 130,000 in the long run, according to bank JP Morgan.
The information was published on Thursday night (1st) on the Business Insider website. Bloomberg also did a story on the subject.
According to the media, the bank said the currency's volatility has always acted as an obstacle to the entry of more institutional investors.
However, in recent weeks the roller coaster typical of this market would be normalizing, which would help to "reinvigorate" interest.
According to JP Morgan, the volatility realized (change in the price of the asset) in the last three months fell to 86% after passing from 90% in February. The six-month average may also be stabilizing at around 73%.
"These tentative signs of normalizing Bitcoin's volatility are encouraging," according to the note.
A drop in the back and forth price of cryptocurrency, according to the institution, could also put BTC as a portfolio diversifier in place of gold.
The metal recorded the biggest quarterly loss since 2016, according to Market Watch.
"Considering how big the financial investment in gold is, any exclusion of gold as an 'alternative' currency implies a big advantage for bitcoin in the long run," said JPMorgan.
Old forecast
It was not the first bitcoin price prediction made by JP Morgan. In January, the bank said the currency could reach $ 100,000 in 2021 because of speculation and $ 146,000 in the long run.
At the time, the institution's quantitative strategist, Nikolaos Panigirtzoglou, went so far as to say that “the elimination of gold as an 'alternative' currency implies a great advantage for bitcoin in the long run”, but that “a convergence in the volatilities between bitcoin and gold is unlikely to happen quickly ”, being“ a multi-year process ”.
Bitcoin is trading at $ 59,000 on Friday (2), according to CoinMarketCap. In reais, the cryptocurrency is quoted at R $ 338 thousand, according to the Bitcoin Price Index (IPB).
