JPM feel that "fair value" for Bitcoin is near $38k

New York (Feb 9)  U.S. investment bank JP Morgan analyst Nikolaos Panigirtzoglou has calculated Bitcoin's "fair value" based on its volatility in comparison with gold (roughly four times as volatile as gold).

Bloomberg reported that JPM strategists calculated the fair-value level at around $38,000. The report said, in a scenario where the volatility differential narrows to roughly three times, the fair value rises to $50,000, they estimated. The bank said, "The biggest challenge for Bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption,". The long-term theoretical target for Bitcoin at 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.

Bitcoin has been recovering from its lows in recent sessions. The price has moved around 33% from the lows seen on 24th January. One of the main hurdles to overcome for the cryptocurrency is the green zone at $47,300. This area where most contracts have changed hands and is known as the volume point of control (VPOC). Beyond that, there is another level marked in red just above $50k. On the downside, the main support zone is the wave low $32,933. The coming sessions will be pivotal for the cryptocurrency as there are some strong resistance zones in close proximity

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