JPMorgan Chase analyst predicts that the stock market could soon experience a significant outflow of billions of dollars in capital. 
 The price of Bitcoin stands at $26,400.67 and over the past seven days, BTC has experienced a decline of nearly 2.87%. 

According to Bloomberg, a JPMorgan Chase analyst predicts that the stock market could soon experience a significant outflow of billions of dollars in capital. Nikolaos Panigirtzoglou, a JPMorgan strategist, suggests that institutional investors are ready to rebalance their portfolios to meet their allocation targets.

Bitcoin Price Forecast by JPMorgan

In a recently published research note, JPMorgan, a prominent global investment bank, unveiled its long-term price prediction and fair value assessment for Bitcoin. Led by Nikolaos Panigirtzoglou, JPMorgan Chase & Co.’s strategists noted that their theoretical target for Bitcoin, in the long run, is $150,000. This represents an increase from their previous prediction of $146,000 made last year.

According to the analysts, if Bitcoin reaches the projected level of $150,000, its market value would align with the total value of privately held gold for investment purposes. This implies a significant milestone in the cryptocurrency’s growth.

The researchers further clarified that the current “fair value” of Bitcoin stands at approximately $38,000, representing an increase from the $35,000 estimate made in the previous year. They derived this fair value by considering Bitcoin’s volatility around four times higher than gold’s.

Moreover, the analysts highlighted that if the volatility gap narrows to three times, the fair value of Bitcoin will surge to $50,000, indicating the potential for even greater growth. According to the JPMorgan strategists’ written analysis, “The biggest challenge for bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption.”

In the meantime, findings from a survey conducted by JPMorgan among its clients indicate that most participants anticipate Bitcoin’s price to surpass $60,000 within the current year. Despite this sentiment, JPMorgan still provides certain cryptocurrency investment options to its clients.

However, it’s worth noting that JPMorgan’s CEO, Jamie Dimon, maintains his cautious stance on crypto investments. He consistently cautions individuals about these assets’ lack of intrinsic value. He previously described Bitcoin as having no worth and raised doubts about its limited supply during remarks made in October of the preceding year.

Bitcoin Price Analysis

As of the current writing, the price of Bitcoin stands at $26,400.67, according to data obtained from Crypto News Flash. Over the past seven days, BTC has experienced a decline of nearly 2.87%. As of the time of writing, BTC has also recorded a drop of 0.38% in the last 24 hours.

The latest macro data reveals several trends that impact Bitcoin (BTC). BTC enthusiasts perceive the downward trend in the Dollar Index (DXY) over the past seven days as a positive development. Similarly, BTC enthusiasts consider the declining trend in the Crude Oil Price over the past three weeks as beneficial for BTC. 

Additionally, the recent Consumer Price Index (CPI) read shows a downward trend, with the lowest value in two years, further supporting Bitcoin. However, BTC enthusiasts view the marginal increase in the Personal Consumption Expenditures Price Index at 4.4% as a negative factor for BTC.

In summary, the macro data suggests a positive outlook for BTC. However, the potential for negative impact remains due to the likelihood of the Federal Reserve hiking rates two more times this year. It’s worth noting that social media sentiment towards BTC is currently at its lowest level in two weeks.

 

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Filed under: Bitcoin - @ June 19, 2023 8:34 pm