Global Banks "Fangirling" Reduced Bitcoin Volatility

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We first noticed the Boring Bitcoin phenomenon back in October of last year, when the most famous crypto stayed within a 10% trading range for a whole three weeks (before breaking out in November of course) and we are now seeing it again.

Bitcoin has been stuck between $55k and $60k for almost two weeks now.

The current stagnation in Bitcoin prices, which is failing to rise above $60,000, is not a bad thing for everyone. Indeed, institutional investors view this boring period, without a big rise or a sharp fall, quite favorably.

In any case, that’s what experts at JP Morgan seem to think.

Volatility normalization

Strategists Nikolaos Panigirtzoglou wrote in an email to wealthy clients this week that:

These tentative signs of Bitcoin volatility normalization are encouraging… In our opinion, a potential normalization of Bitcoin volatility from here would likely help to reinvigorate the institutional interest going forward.

According to business banks, this normalization could indeed help reinvigorate institutional interest in Bitcoin in the near future.

As this volatility is in constant relative decline also over the long term JP Morgan’s expert claims that volatility spreads are tightening and declining from their peak, which was reached at the end of the previous crypto market bull run in 2017.

Given the reduced volatility it noticed, JP Morgan has also updated its price target for Bitcoin, stating:

Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term…

Mechanically, the Bitcoin price would have to rise to $130,000 to match the total private sector investment in gold.

Still, for all us used to the rapid rises and falls witnessed in the past years, quite boring times though.