According to Bloomberg, the US financial behemoth JPMorgan argues that Bitcoin’s fair worth is $35,000, which is 44 percent lower than the current price of $63,300. JPMorgan is the largest bank in the world.
It bases its estimate on a comparison of the cryptocurrency’s volatility to the volatility of gold. Bitcoin is now four times more volatile than gold, which is a beautiful metal.
JPMorgan claims that the current prices are “unattractive,” despite the fact that the stock is expected to see more gains in the future. According to U.Today, billionaire Peter Thiel also believes that Bitcoin is overvalued at more than $60,000, stating that the cryptocurrency’s astronomical worth might be a symptom of out-of-control inflation in the United States.
According to the banking giant, the top cryptocurrency could reach $100,000 in 2022 if its volatility does not significantly decrease: “This calls into question the notion 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.”
When JPMorgan CEO Jamie Dimon called Bitcoin “worthless” last month, the cryptocurrency community erupted in outrage. JPMorgan anticipates that cryptocurrency will continue to rise in value in 2022, anticipating a modest 15 percent growth.
However, the banking behemoth recommends investors to steer clear of the risky asset class and instead invest in the real estate market instead. JPMorgan anticipates an increase in the value of both residential and commercial real estate as a result of increasing forecasts for economic growth.
