JPMorgan issues a Bitcoin forecast for the coming months
According to banking experts, the sharp drop in Bitcoin’s price on October 10–11 and November 4–5 was caused by an “unhealthy and unstable background” in the derivatives market.
“The first cryptocurrency absorbs 1.8 times more risk capital compared to gold; therefore, its market capitalization should be higher. This implies an increase of 60–70% from the current level of $2 trillion, meaning a potential rise to $170,000,” JPMorgan specialists explained.
The bank believes that gold’s volatility may increase in the near future, making Bitcoin an even more attractive asset for hedge fund managers.
According to analysts, the end of the Federal Reserve’s quantitative easing program (government-backed asset purchases) in November will not trigger higher volatility in stock and crypto markets due to the limited liquidity of the U.S. banking system.
Earlier, JPMorgan Chase & Co CEO Jamie Dimon stated that he would stop publicly criticizing the first cryptocurrency.
See also: "Bloomberg Strategist Mike McGlone Predicts Bitcoin Drop to $56,000"
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