Bitcoin is currently overvalued by 13% according to JP Morgan
JP Morgan has upped the ante. If you first thought that Bitcoin could slightly exceed $100,000, now expects its long-term price to reach $150,000. An exchange price that banking strategists have identified despite the fact that they believe the current value is too expensive compared to the real value. Currently expected to be around $38,000. It’s about a overestimation about 13%.
These calculations are the direct result of the volatility of Bitcoin which is four times that of gold. According to these specific analyses, if this volatility were reduced to three times the “just value“Was jumping to about $50,000. Here is what the report says:
The biggest challenge that bitcoin will face in the future is its volatility and boom and bust cycles that hinder its institutional adoption. This position mainly shows the inability to understand what brings many people and institutions to digital assets and cryptocurrencies.
Overvalued Bitcoin is a miscalculation
Thus, according to analysts at JP Morgan bank, we could see in the long term a Bitcoin amounting to approximately $150,000 at listing. However, what shocked in the bank’s report was its current value which, according to experts, would be overrated. Some analysts, in favor of Bitcoin, have called this statement a simple Error Evaluation. Indeed, he identifies Bitcoin’s volatility as a weakness. Here is how Leah Wald, CEO of Valkyrie Investments, explained this position:
The main flaw in JPMorgan’s argument against bitcoin’s resilience is that volatility will hinder wider adoption. This position mainly shows the inability to understand what brings many people and institutions to digital assets and cryptocurrencies.
Nevertheless, the report JP Morgan comes at a particularly difficult time for cryptocurrencies which seem to be increasingly correlated with traditional actions. For Bitcoin, this situation calls into question its historical status as an untied asset.
However, despite these ups and downs, Wald seems to be optimistic against the performance of Bitcoin:
When looking at metrics – including active wallet addresses, which are still well above what they were during the cryptocurrency winter, the amount of bitcoin exiting exchanges, which continues to grow and is often an indicator that experienced traders believe the market will move higher, and the seemingly endless parade of venture capital investments announced in the space – we remain firmly optimistic.