The Strategist

JPMorgan forecasts Bitcoin to rise to $146,000


01/07/2021 - 03:36



In the long term, the price of bitcoin may exceed $146,000, analysts at JPMorgan forecast. According to them, the cryptocurrency will gradually displace gold as an "alternative" currency.



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pixabay
In the long term bitcoin exchange rate may exceed $146,000 on the background of displacement of gold as a protective asset, according to strategists of JPMorgan Chase headed by Nikolaos Panigirtzoglou, quoted by Bloomberg.

"The displacement of gold as an 'alternative' currency speaks to the great potential for bitcoin's value to grow in the long term," the analysts said. To match the private sector's overall investment in gold through exchange-traded funds, bullion and coins, the cryptocurrency's current market capitalization of $575 billion would need to grow 4.6 times, they said.

At the same time, JPMorgan experts point out that "the convergence of volatility between bitcoin and gold is unlikely to happen quickly" and will take several years, so "the theoretical target price for bitcoin above $146,000 should be seen as a long-term goal and impossible in the next year."

It cannot be ruled out that amid "speculative mania," the bitcoin price will rise to $50,000-$100,000 in the near future, but such price levels will prove unsustainable, analysts said.

Anthoni Trenchev, managing partner and co-founder of cryptocurrency company Nexo, previously said in a conversation with Bloomberg that bitcoin could rise to $50,000 in the first quarter of 2021. BitPay Chief Commercial Officer told the agency that bitcoin would hit the $45,000 mark next month. 

source: bloomberg.com




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