American banking giant JPMorgan predicts Bitcoin’s price will approach US$150,000 in the long term, strategist Nikolaos Panigirtzoglou wrote in an investors note cited by Bloomberg.

Fast facts

  • Bitcoin, the largest cryptocurrency by market capitalization, is currently trading at about US$43,830, but JPMorgan pegs its fair value at around US$38,000, about 15% lower than its current trading price.
  • JPMorgan’s long-term target for Bitcoin is an increase from its prediction a year ago, which was at US$146,000.
  • JPMorgan’s analysis could be read as a warning for short-term investors looking to strike gold in the booming digital economy.
  • JPMorgan feels Bitcoin’s volatility is four times higher compared to that of gold, and that Bitcoin needs to be substantially less volatile to become more valuable. 
  • Bitcoin’s volatility can be gauged from the fact that its price increased a whopping 138% in a one-year period to reach an all-time high of $68,789 from $28,893, before drawing back to its current price.