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JPMorgan Sees Institutional Opportunity Due to Falling Bitcoin Volatility

Summary:
A drop in volatility in Bitcoin (BTC) can have a good effect on attracting large players. At least analysts of the American bank JPMorgan think so, writes Bloomberg. According to experts, the recent decrease in cryptocurrency volatility creates conditions for the arrival of institutional investors. JPMorgan said: We believe that a potential normalization of bitcoin volatility is likely to help revive institutional interest in the future. Moreover, the price of BTC could rise to 0,000 if retail investment in cryptocurrency equals gold. However, when exactly such a jump in price could occur, analysts did not specify. According to the calculations of the American bank, the three-month volatility of Bitcoin fell to 86%. The half-year indicator will stabilize at around 73%. Source:

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A drop in volatility in Bitcoin (BTC) can have a good effect on attracting large players. At least analysts of the American bank JPMorgan think so, writes Bloomberg.

According to experts, the recent decrease in cryptocurrency volatility creates conditions for the arrival of institutional investors. JPMorgan said:

We believe that a potential normalization of bitcoin volatility is likely to help revive institutional interest in the future.

Moreover, the price of BTC could rise to $130,000 if retail investment in cryptocurrency equals gold. However, when exactly such a jump in price could occur, analysts did not specify.

According to the calculations of the American bank, the three-month volatility of Bitcoin fell to 86%. The half-year indicator will stabilize at around 73%.

JPMorgan Sees Institutional Opportunity Due to Falling Bitcoin Volatility

Source: bloomberg.com

As volatility falls, more major players will take an interest in cryptocurrencies, analysts say. The bank’s comments come after Bitcoin briefly hit $60,000 on April 2 in its slow grind back to all-time highs.

According to data from TradingView, the BTC/USD pair rose to a local peak of $60,187 on Bitfinex exchange.

The ensuing decline brought Bitcoin closer to $59,000 and at the time of this writing, it was trading at $59,497.

JPMorgan Sees Institutional Opportunity Due to Falling Bitcoin Volatility

1-hour chart (Bitfinex) for the BTC/USD pair. Source: Tradingview

The effort to stay high means that Bitcoin has recovered from the beginning of the week and continues to trade in a safe corridor.

Popular trader Crypto Ed wrote in a tweet on Friday:

Other experts are more optimistic. Short-term estimates include $68,000 and $73,000. The targets for the end of 2021 exceed $288,000.

JPMorgan Sees Institutional Opportunity Due to Falling Bitcoin Volatility

BTC/USDT trading levels (Binance) as of April 2. Source: Material Indicators

If you have any questions and comments on Bitcoin today, use the form below to reply.


© MarkStevenson for Commodity News, 2021. | Permalink | No comment |
Published under: Bitcoin, Forecasts

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