Bluesky Digital Assets Corp C.BTC

RE:JPMorgan Estimates Bitcoin’s ‘Fair Value’ at $38,000

[Iseneschal]

Oolong780 wrote: https://www.bloomberg.com/news/articles/2022-02-09/bitcoin-s-volatility-versus-gold-implies-38-000-value-jpmorgan
 
JPMorgan Estimates Bitcoin’s ‘Fair Value’ at $38,000, 12% Below Current Price
 
By Joanna Ossinger
 
February 8, 2022, 10:41 PM EST
 
Bitcoin’s “fair value” is around 12% below the current price, based on its volatility in comparison with gold, according to JPMorgan Chase & Co. strategists led by Nikolaos Panigirtzoglou.
 
The strategists calculated the fair-value level at around $38,000 based on Bitcoin being roughly four times as volatile as gold, they wrote in a note published Tuesday. In a scenario where the volatility differential narrows to three times, the fair value rises to $50,000, they estimated. Bitcoin was trading at around $43,400 as of 11:20 a.m. in Hong Kong.
 
“The biggest challenge for Bitcoin going forward is its volatility and the boom-and-bust cycles that hinder further institutional adoption,” the strategists wrote.
 
Panigirtzoglou’s long-term theoretical target for Bitcoin -- a level that would put its total market value on par with that of all gold held privately for investment purposes -- sits at $150,000, up from $146,000 a year ago.
 
The strategists also said January’s price correction looks less like a capitulation than the one last May, which saw Bitcoin tumble as much as 50%. Still, metrics like futures open interest and reserves on exchanges are now pointing to a “more long-standing and thus more worrisome position reduction trend” that started in November, they noted.

For what it's worth....... Bitcoin is a NFT (Non-Fungible Token) which is a non-interchangeable unit of data stored on a blockchain ledger that can be sold and traded. In my words.....this is just a glorified pyramid scheme......we just hope that there is a "Greater Fool" that will pay me more than what I paid for the Bitcoin. Cheers !