Investment banking giant JPMorgan has named a long-term price target of bitcoin for more than $ 146,000, based on the assumption that the cryptocurrency will grow in popularity as an alternative to gold, Bloomberg reports.
” A repression of gold as an ‘alternative’ currency means a big rise for bitcoin in the long run, ‘strategists led by Nikolaos Panigirtzoglou wrote in a note on Monday. ‘Bitcoin’s [current] market capitalization of about $ 575 billion will have to increase by 4.6 times – at a theoretical Bitcoin price of $ 146,000 – to adjust the total private sector investment in gold through exchange traded funds or rods and coins. ”
However, analysts have argued that bitcoin’s price volatility should decline for institutions to make large grants. The merger of volatility in bitcoin and gold is a “multi-year process” and indicates that the target is $ 146,000 plus a long-term goal, JPMorgan noted.
Bitcoin rose 300% to $ 29,000 in 2020, increasing profits to a new record price of $ 34,420 in the first three days of the new year. The crypto-currency has risen by more than 160% in just the last three months, and this is helped by increased institutional participation.
While the crypto community expects the rally to continue, JPMorgan sees signs of ‘speculative mania’ and believes that further large gains in the region of $ 50,000 – $ 100,000 could be unsustainable in the short term.