JP Morgan, the American Investment Banking giant said the declining price volatility of Bitcoin over the past weeks has made it a more reliable asset for institutions to invest in. Bitcoin’s ongoing bull run has made it more non-corelative with the traditional stock market, thus a growing choice of investors for diversifying their investments.

The American banking giant recently added Bitcoin exposure for its wealthy clients after huge demand for the same. The bank explained,

 “Institutional investment likely to arise from the recent change in the correlation structure of bitcoin relative to traditional asset classes,”

Bitcoin Price Have to Reach $130K to Flip Gold Market

The banking giant in its note also doubled down upon its earlier long-term Bitcoin price prediction of $130,000 based on converging volatility. The bank believes the recent surge in institutional interest forcing many Wall Street banks to add Bitcoin exposure for their clients is a sign of shifting the confidence of investors from Gold to Bitcoin.

In 2020 alone $20 billion flowed out of gold markets and during the same time frame Bitcoin market registered an influx of $7 billion.

#Bitcoin is eating Gold. pic.twitter.com/C1YwMoOQJL

— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) April 2, 2021

“Mechanically, the bitcoin price would have to rise [to] $130,000, to match the total private sector investment in gold.”

The bank added,

“A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is likely a multi-year process. This implies that the above $130,000 theoretical bitcoin price target should be considered as a long-term target,”

Bitcoin since the start of 2021 has nearly tripled its price with a new ATH of $61,628 and is increasingly seeing mainstream banking giants and wall street wealth managers rushing to add it to their offerings in some form. Most recently Goldman Sachs and Morgan Stanely became the latest institutions to add Bitcoin exposure to its multiple funds and according to many industry insiders more would join the Bitcoin league by the end of this year.