Bitcoin recovered above $57,500 on Monday after it remained well bid above the $56,500 support zone.
The king coin is now trading well above $58,500 after it surmounted the resistance near $58,250. If BTCUSD falls below $58,250, there could be a downward correction, with the next support on the downside sitting at $57.5K.
BTCUSD Chart By TradingView
JP Morgan Sets a $130K Long-Term Price Target for BTC
In their latest research note, analysts from banking giant JP Morgan argued that BTC’s declining volatility could boost institutional investors’ adoption.
Nikolaos Panigirtzoglou, a researcher at JPMorgan, had earlier highlighted volatility in the BTC market as a deterrent for many institutions.
The bank now says that lower BTC volatility could attract more investment from large organizations but clarified that the $130K theoretical BTC price target should be considered a long-term target. At this price, the flagship crypto would match the total private sector investment in gold.
“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,” JPMorgan mentioned in the note.
Big corporations worldwide have started considering BTC, which boasts a market cap of over $1.08 trillion, as an interesting gold-like asset that can be a viable safe-haven asset.
Despite recently crossing the 10% market cap of gold, investment in bitcoin remains relatively smaller than its precious metal rival. However, the tide has been slowly turning in recent months, with consistent outflows reported in gold investments while strong inflows into the BTC market were observed over the same period.
JP Morgan forecasts that if bitcoin’s volatility continues to converge with that of gold, it would be seen by more big-money investors as a low-correlation asset that can diversify investment portfolios.
ETH Price Holds Strong Above $2K
Ethereum followed a bullish path over the weekend and broke many hurdles near the $2,000 level to trade further into the green.
The second-largest cryptocurrency soared to a new all-time high near $2,140 before correcting slightly lower. As of this article’s writing, ETH/USD is changing hands for $2,093 and looks well primed to rally higher.
ETHUSD Chart by TradingView
However, the bears are protecting the $2,100 zone. If the bulls can avoid a downside break below $2K, ETH will likely start a fresh increase in the near term.