We collect cookies to analyze our website traffic and performance; we never collect any personal data. Cookie Policy
Accept
The Tycoon Herald
  • Trending
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Money
    • Crypto / NFT
  • Innovation
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion
    • Leadership
  • Health
  • Sports
  • Entertainment
Reading: JPMorgan Reveals Bitcoin’s ‘Biggest Challenge’—Along With A Surprise Bitcoin Price ‘Fair Value’
Sign In
The Tycoon HeraldThe Tycoon Herald
Font ResizerAa
Search
  • Trending
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Money
    • Crypto / NFT
  • Innovation
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion
    • Leadership
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© Tycoon Herald. All Rights Reserved.
The Tycoon Herald > Crypto / NFT > JPMorgan Reveals Bitcoin’s ‘Biggest Challenge’—Along With A Surprise Bitcoin Price ‘Fair Value’
Crypto / NFTMoney

JPMorgan Reveals Bitcoin’s ‘Biggest Challenge’—Along With A Surprise Bitcoin Price ‘Fair Value’

Tycoon Herald
By Tycoon Herald 5 Min Read
Share
SHARE

Bitcoin, after soaring through much of last year, has had a tough start to 2022—despite some huge bitcoin price predictions.

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover hot new NFT and crypto blockbusters poised for 1,000% gains

The bitcoin price hit lows of $32,000 per bitcoin in January, down from a peak of around $70,000 per bitcoin, but has recently bounced back, climbing over $45,000 for the first time in over a month.

However, banking giant JPMorgan has calculated bitcoin’s “fair value” to be far lower than its current price—and warned bitcoin’s “boom and bust cycles” are its biggest challenge when it comes to institutional adoption.

Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday

MORE FROM FORBES‘Risk-Reward Model’ And NFTs Reveal The Price One CEO Is Looking To Buy Bitcoin And Ethereum ‘Very, Very Aggressively’By Billy Bambrough

MORE FOR YOU

Wall Street giant JPMorgan has warned bitcoin could struggle to gain institutional adoption as … [+] extreme price volatility roils markets.

SOPA Images/LightRocket via Getty Images

“The biggest challenge for bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption,” JPMorgan strategists wrote in a note to clients this week, it was first reported by Bloomberg.

JPMorgan’s calculations are based on bitcoin’s volatility in comparison with gold, with bitcoin roughly four times as volatile. However, if bitcoin’s volatility differential narrows to just three times gold’s, the bitcoin price fair value rises to $50,000. Over the longer term, JPMorgan has maintained its huge $150,000 bitcoin price prediction—a price that would give bitcoin a market capitalization of $2.8 trillion and put it on par with all gold held privately for investment purposes.

“With no fundamental value, like commodities, stocks or bonds have, bitcoin’s price is influenced by investor interest, making it a purely speculative asset,” Alex Kuptsikevich, a senior financial analyst at FxPro, said in emailed comments.

“Simply put, its price is determined not so much by volatility as by crowd interest. Without investor interest, it quickly goes sour, and with it, it picks up just as fast. In bitcoin’s favour is the reduced supply growth rate and its finiteness.”

By some measures, the bitcoin price is becoming less volatile over time, which could increase its appeal to institutional investors.

“We should also note that the entry of institutional investors, the increasing acceptance of bitcoin as an asset for portfolio diversification, and the increased trading turnover in cryptocurrencies make the price less volatile over time,” Kuptsikevich added, pointing to the bitcoin price climbing around 18 times from bottom to peak during the 2020-2021 growth cycle, while after the previous halving, in 2016-2017, the price rose 52 times. “This is comfortable for corporates and institutional investors but hardly to the liking of retail investors.”

CryptoCodex—A free, daily newsletter for the crypto-curious

MORE FROM FORBESCongress Introduces A Radical Crypto Bill To ‘Unleash Innovation’ As The Price Of Bitcoin And Ethereum Suddenly SoarBy Billy Bambrough

The bitcoin price has swung wildly over the last year, hitting a peak of almost $70,000 per bitcoin … [+] before crashing back.

Coinbase

Despite putting bitcoin’s fair value under its current price, JPMorgan analysts are feeling more bullish than they did during bitcoin’s latest major crash in May last year, but pointed to a “more long-standing and thus more worrisome position reduction trend” as cause for concern.

Bitcoin and crypto investment funds saw large outflows through January, according to CoinShares data, as institutional investors took profits and reduced their positions. However, investors returned in February. About $71 million flowed into bitcoin-focused funds last week, the largest amount since early December.

In October, the first U.S. bitcoin futures exchange-traded fund (ETF) launched in New York to huge hype that didn’t last. The ProShares Bitcoin Strategy fund became the first of its kind to start trading and debuted to record-setting demand, absorbing $1.1 billion in just two days but the pace of growth quickly cooled.

You Might Also Like

Tips on how to Price range Your Money Utilizing Dave Ramsey’s Budgeting Percentages – Dollarsanity

How To Make A Funds: 12 Simple Methods To Do It (The Full Information) – Dollarsanity

10 Outdated-Normal Cleansing Suggestions from Grandma – Dollarsanity

Wedding ceremony On A Funds: Get $30K-Like Wedding ceremony For $5K or Much less – Dollarsanity

Pacific Spirit: Vinyl Meets Code in a Groundbreaking Generative Drop on Artwork Blocks | NFT CULTURE | NFT Information | Web3 Tradition | NFTs & Crypto Artwork

TAGGED:MoneyThe Forbes Journal
Share This Article
Facebook Twitter Email Copy Link Print
Improve in navy assist to Ukraine marks a shift in White Home coverage towards Russia
World

Improve in navy assist to Ukraine marks a shift in White Home coverage towards Russia

A navy car drives by Patriot air protection methods put in on the Rzeszow-Jasionka airport, a logistics hub for U.S. and European navy assist to Ukraine, in southeastern Poland on…

By Tycoon Herald 6 Min Read
FirstFT: Donald Trump proclaims US-Indonesia commerce deal
July 15, 2025
Darth Vader’s ‘Star Wars’ Lightsaber Set to Hit Public sale Block
July 15, 2025
Tara Moore: British tennis participant handed four-year doping ban after Worldwide Tennis Integrity Company attraction is upheld
July 15, 2025
Trump’s choose for U.N. Ambassador grilled over Sign chat scandal
July 15, 2025

You Might Also Like

80 Issues I Stopped Shopping for to Save Money Quick and Pay Off Debt – Dollarsanity
Money

80 Issues I Stopped Shopping for to Save Money Quick and Pay Off Debt – Dollarsanity

By Tycoon Herald 38 Min Read
Prime NFT Collections – March 27, 2025 | NFT CULTURE | NFT Information | Web3 Tradition | NFTs & Crypto Artwork
Crypto / NFT

Prime NFT Collections – March 27, 2025 | NFT CULTURE | NFT Information | Web3 Tradition | NFTs & Crypto Artwork

By Tycoon Herald 1 Min Read
High NFT Collections – March 26, 2025 | NFT CULTURE | NFT Information | Web3 Tradition | NFTs & Crypto Artwork
Crypto / NFT

High NFT Collections – March 26, 2025 | NFT CULTURE | NFT Information | Web3 Tradition | NFTs & Crypto Artwork

By Tycoon Herald 1 Min Read

More Popular from Tycoon Herald

MEET THE FATHER OF COADUNATE ECONOMIC MODEL
BusinessTrending

MEET THE FATHER OF COADUNATE ECONOMIC MODEL

By Tycoon Herald 2 Min Read
Woman Sentenced to 7 Days in Jail for Walking in Yellowstone’s Thermal Area

Woman Sentenced to 7 Days in Jail for Walking in Yellowstone’s Thermal Area

By Tycoon Herald
Empowering Fintech Innovation: Swiss Options Partners with Stripe to Transform Digital Payments
InnovationTrending

Empowering Fintech Innovation: Swiss Options Partners with Stripe to Transform Digital Payments

By Tycoon Herald 7 Min Read
Sports

Billie Jean King Cup: Jasmine Paolini leads Italy to title with victory in opposition to Slovakia in Malaga

An impressed Jasmine Paolini led Italy to a fifth Billie Jean King Cup title as they…

By Tycoon Herald
Economy

Readability on tariffs can’t come quickly sufficient

Unlock the Editor’s Digest at no costRoula Khalaf, Editor of the FT, selects her favorite tales…

By Tycoon Herald
Trending

U.S. Blew Up a C.I.A. Post Used to Evacuate At-Risk Afghans

A controlled detonation by American forces that was heard throughout Kabul has destroyed Eagle Base, the…

By Tycoon Herald
Leadership

Northern Lights: 17 Best Places To See Them In 2021

Who doesn’t dream of seeing the northern lights? According to a new survey conducted by Hilton, 59% of Americans…

By Tycoon Herald
Real Estate

Exploring Bigfork, Montana: A Little Town On A Big Pond

Bigfork, Montana, offers picturesque paradise in the northern wilderness. National Parks Realty With the melting of…

By Tycoon Herald
Leadership

Leaders Need To Know Character Could Be Vital For Corporate Culture

Disney's unique culture encourages young employees to turn up for work with smiles on their faces.…

By Tycoon Herald
The Tycoon Herald

Tycoon Herald: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact Us

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Terms of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© Tycoon Herald. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?