The financial behemoth is steadily gaining trust in Bitcoin and institutional acceptance.
JPMorgan cited declining Bitcoin volatility as a positive for institutional interest in the asset in an email note sent to clients on Thursday. In a Bloomberg article about the release, strategists like JPMorgan's Nikolaos Panigirtzoglou wrote:
“These tentative signs of Bitcoin volatility normalization are encouraging… In our opinion, a potential normalization of Bitcoin volatility from here would likely help to reinvigorate the institutional interest going forward.”
The strategists revised their Bitcoin price goal to comply with private sector Gold investment, based on Bitcoin's decreasing long-term volatility.
"Given the size of the financial investment in gold, any such crowding out of gold as a 'alternative' currency means significant long-term upside for bitcoin... To equal the overall private sector investment in gold, the Bitcoin price will have to increase to $130,000, according to the email from JP Morgan.
The continued support from incumbents in the legacy financial sector in what has been a watershed year for Bitcoin is very bullish, with Goldman Sachs and Morgan Stanley both filing to sell products in the market.
Expect further upward price target revisions from JPMorgan and others, who have traditionally been much too bearish, as time passes and the Bitcoin price continues to soar on the back of increased adoption and entry into the space. As Wall Street will discover, matching private sector gold investment is just the beginning.
