A group of JPMorgan strategists led by Nikolaos Panigirtzoglou has warned that Bitcoin’s latest correction may not be over. However, they have set their long-term price target at $145,000.
While Bitcoin may be showing signs of recovery after plunging from $57,000 to nearly $30,000, strategists at JPMorgan have forecasted that the price of the digital asset may still drop further in the short term. Panigirtzoglou and his team predict that Bitcoin could drop to $24,000 in the mid-term. They explained in a note to clients that:
The fair value for bitcoin based on a volatility ratio of Bitcoin to gold of around x4 would be 1/4th of $145k or $36k. The fair value for Bitcoin based on the current volatility ratio of Bitcoin to gold of around x6 would be 1/6th of $145k or $24k. We thus see a fair value range of $24k to $36k over the medium term.
Although its short-term prediction sounds rather bearish, JPMorgan is still confident in the future of Bitcoin. In the long term, the analysts believe that Bitcoin could hit $145,000, a target that assumes “a convergence of Bitcoin volatility to that of gold and an equalization of bitcoin allocations to that of gold in investor portfolios.”
As reported by BTC PEERS, Ethereum products recorded significant institutional inflows last week, while Bitcoin products saw a slight capital outflow. This suggests that investors may be temporarily shifting funds from Bitcoin to Ethereum.