JPMorgan reiterates Bitcoin's fair value at $38,000

In a Tuesday report, JPMorgan reiterated bitcoin’s “fair value” at $38,000, about 12% below current levels.

That’s based on bitcoin’s volatility roughly four times that of gold, strategists at JPMorgan, led by Nikolaos Panigirtzoglou, wrote in a note. They estimate that Bitcoin’s fair value will rise to $50,000 if the volatility spread shrinks by a factor of three.

"Bitcoin's biggest challenges going forward are its volatility and boom-and-bust cycles, which hinder further institutional adoption," JPMorgan said.

In a report late last month, JPMorgan cut bitcoin’s fair value to $38,000, arguing that its long-term price target of $150,000 set last year is unlikely to be achieved in the foreseeable future.

JPMorgan said at the time: “Our previous forecast that bitcoin-gold volatility will drop to around 2x later this year seems unrealistic. Based on the current bitcoin-gold volatility of around 4x, we Think Bitcoin’s fair value will be a quarter of $150,000, or $38,000.”