Bitcoin could reach $150,000, says JP Morgan strategists

The bank calculated the fair-value level of Bitcoin at around $38,000 based on the cryptocurrency being roughly four times as volatile as gold

Strategists at JP Morgan Chase and Co believe that the price of Bitcoin could reach $150,000, and the world's largest cryptocurrency could compete with private investments in gold.

Bitcoin’s “fair value” is around 12 percent below the current price, based on its volatility in comparison with gold, Bloomberg reported citing JPMorgan Chase & Co. strategists led by Nikolaos Panigirtzoglou.

Panigirtzoglou’s long-term theoretical target for Bitcoin sits at $150,000, up from $146,000 a year ago, the report said.

The fair-value level of Bitcoin was calculated at around $38,000 based on the cryptocurrency being roughly four times as volatile as gold. "In a scenario where the volatility differential narrows to three times, the fair value rises to $50,000," Bloomberg reported.

Bitcoin was trading at around $44,236, at 12:30 p.m. GST.

“The biggest challenge for Bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption,” the strategists wrote in a note.