Bitcoin's (EXANTE: Bitcoin) recent decline in volatility could bring more institutions with a long-term price target of $130,000, JPMorgan said in a note, Business Insider reports. The bank believes a surge of institutional investors will "likely to arise from the recent change in the correlation structure of bitcoin relative to traditional asset classes."
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"Mechanically, the bitcoin price would have to rise [to] $130,000, to match the total private sector investment in gold," the bank said.
The bank emphasized that the convergence in volatility between bitcoin and gold is unlikely to happen quickly and will take several years. Thus, reaching a $130,000 mark should be seen as a long-term goal, JPMorgan added.
JPMorgan's new target for the price of bitcoin comes after the bank found the balancing buying power between retail and institutional investors for the first time over the past few years. According to the bank, Square and PayPal generated a total of 187,000 BTC sales amid retail investors so far this quarter, compared to roughly 205,000 last quarter.
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