JPMorgan strategist Nikolaos Panigirtzoglou wrote in a research note that bitcoin's price might fall further before stabilizing after a correction, CNBC and Yahoo Finance reported.

"It now seems unlikely that we see this volatility ratio returning to the x2 levels of last summer. The best we can hope for over the medium term is for this volatility ratio to partially revert from around x6 currently to around x4 by year end," Panigirtzoglou said, as quoted by CNBC.

The price of bitcoin continues to see volatility after crashing in May, when it fell to as low as $30,000 from a high of more than $64,000 in April.

The note said the medium-term fair value for bitcoin, the world's largest cryptocurrency by market capitalisation, is in the $24,000 to $36,000 range.

The JPMorgan strategist said that the crash in bitcoin has weakened institutional demand.

"There is little doubt that the boom and bust dynamics of the past weeks represent a setback to the institutional adoption of crypto markets and in particular of Bitcoin and Ethereum. We note that the mere rise in volatility, especially relative to gold, is an impediment to further institutional adoption as it reduces the attractiveness of digital gold vs. traditional gold in institutional portfolios," Panigirtzoglou said, as quoted by Yahoo Finance.