JP Morgan Says Bitcoin Is Undervalued at the Current Price: Sets Price Target

JP Morgan, a leading financial institution with $3.6 trillion in assets under management, has highlighted that Bitcoin is undervalued. It reached this conclusion in a Thursday disclosure placing the crypto leader side by side with the prominent precious metal, gold.

Bitcoin Is Cheap Relative to Gold

The Wall Street giant bank noted that Bitcoin is relatively inexpensive compared to gold, which is the largest asset by market capitalization. Notably, data support this narrative, as the precious metal has a market capitalization of $23.2 trillion, compared to Bitcoin’s $2.23 trillion.

Further, JP Morgan noted that Bitcoin’s volatility has declined considerably, as its six-month statistics represent a drop from 60% to 30%. The drop marked a record low in the asset’s lifetime volatility, the banking institution outlined. 

Meanwhile, Bitcoin’s volatility is drawing closer to that of gold, narrowing the difference to its lowest recorded level. For context, Bitcoin is just twice as volatile as gold, suggesting that the scarce mineral has a volatility of 15%. 

All these factors led JP Morgan to conclude that Bitcoin is selling at a discounted price of $16,000, suggesting a bullish outlook.

JP Morgan Gives Bitcoin Target Upon Adjustment

Notably, JP Morgan further argued that based on the volatility-adjustment basis, Bitcoin would have to increase to match this price fluctuation change. Specifically, it projected a 13% market cap rise to match the $16,000 gap, taking BTC’s price to $126,000.

Interestingly, the $126,000 price target will see Bitcoin match gold’s $5 trillion in private investment. From the current market price of $111,981, reaching the new all-time price would entail a 12.5% rally for Bitcoin.

Crypto Founder Gives Bullish Bitcoin Target

In a recent interview, Cardano founder Charles Hoskinson projected that Bitcoin would reach $250,000 by the end of this bullish cycle. He disclosed that Bitcoin DeFi would catalyze the surge to unprecedented prices.

Hoskinson noted that bringing smart contracts to the Bitcoin network will propel the asset price to this new high, which is 12.5% away from its current market price. Meanwhile, he went further to predict that Bitcoin’s market capitalization will reach $10 trillion within the next five years.

Notably, this ambiguous prediction will further reaffirm Bitcoin’s position as one of the largest assets, specifically placing it as the second most valuable globally, behind gold. Currently, Bitcoin ranks seventh on the list, behind companies such as Google, Microsoft, and Amazon.

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