JPMorgan issued a note Thursday that bitcoin could fetch a long-term price of $130,000 if its volatility continues to decline.

• According to JPMorgan, Bitcoin is becoming more appealing to institutions seeking low-correlation assets that diversify portfolios, Business Insider reported Thursday.
• The U.S. investment bank noted that high volatility “acts as a headwind towards further institutional adoption.”
• The signs that bitcoin’s volatility is diminishing could see it “crowding out gold” as a portfolio diversifier and suggests a long-term price target of $130,000, JPMorgan’s note said.
• This target is based on the notion that bitcoin’s volatility will meet gold’s, which for the time being is still some way off. Bitcoin’s realized volatility in the last three months stood at 86% compared to 16% for gold.
• A separate JPMorgan report issued to ultra-high-net-worth clients in March played down the comparison between bitcoin and gold, arguing that the crypto’s “volatility characteristics and correlation profile refute the comparison to the traditional safe haven asset.”

See also: Veteran Analyst Peter Brandt Expects Bitcoin to Reach $200K