Global investment bank JPMorgan has predicted that the long-term price of bitcoin will reach $150K while the fair value of the cryptocurrency sits at $38K. “The biggest challenge for bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption,” JPMorgan’s analysts explained.

JPMorgan’s Bitcoin Price Prediction

The global investment bank JPMorgan has released its predictions for the long-term bitcoin price and cryptocurrency’s fair market value.

JPMorgan Chase & Co.’s strategists, led by Nikolaos Panigirtzoglou, wrote in a research note published Tuesday that their long-term theoretical target for bitcoin is $150K, up from $146K predicted last year.

At this level, bitcoin’s market value would be equal to that of private gold for investment purposes.

The analysts clarified that bitcoin’s “fair value” is around $38K, up from $35K estimated last year.

They calculated the coin’s fair value based on bitcoin being roughly four times as volatile as gold, adding that if the volatility differential narrows to three times, then the fair value of BTC would rise to $50K.

The JPMorgan strategists wrote

The biggest challenge for bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption.

At the time of writing, the price of bitcoin is $43,855 based on data from Bitcoin.com Markets. BTC is up almost 19% over the past seven days and almost 5% in the last 30 days.

Meanwhile, a JPMorgan client survey shows that the majority of respondents expect bitcoin’s price to reach $60K or more this year. The firm currently offers some crypto investments to clients.

Nonetheless, JPMorgan CEO Jamie Dimon continues to warn people about investing in crypto, citing that the assets have no intrinsic value. He called bitcoin worthless in October last year, questioning its limited supply.

What do you think about JPMorgan’s bitcoin price prediction? Comment below.

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