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Will Bitcoin Price Rally to $146,000? JPMorgan Thinks So

January 5, 2021 at 18:45 by Mark Stevenson

American financial giant has predicted the long-term development of the price of Bitcoin (BTC) in competition with gold.

Bitcoin competes with gold for defensive asset status, making it potentially attractive in the long run. This is the opinion of analysts from the American bank JPMorgan Chase & Co, writes Bloomberg.

The market capitalization of Bitcoin, which at the time of this writing is almost $616 million, will have to grow 4.6 times to equal the capital inflow with the gold market. In this situation, the price of one bitcoin will surpass the $146,000 mark, analysts say.

Related: Bitcoin Price May Reach $40,000 in 2021: Bloomberg Analyst Says

However, the success of the leading cryptocurrency depends on its volatility. The bank’s experts emphasize that growth to $146,000 and more is possible only with high activity of institutional investors.

“The displacement of gold as an“ alternative ”currency will open up great potential for growth for Bitcoin in the long term,” experts say.

However, even with the support of institutions, one should not expect a rapid rise in the price of BTC. The process is likely to drag on for many years.

Experts also believe that the New Year rally only complicates the assessment of the asset’s fair value. The current “speculative mania” could bring bitcoin in the range of $50-$100,000, JPMorgan admits.

Before now, Deutsche Bank analysts have drawn attention to the use of Bitcoin as an alternative to gold to hedge against inflation and to hedge the risks associated with the devaluation of the dollar.

Read also: Gold Proponent Says Bitcoin Is Millennial Gold

It is noteworthy that back in late October 2020, JPMorgan analysts stated that Bitcoin could replace gold in the future as a defensive asset. According to experts, even a small crowding out of gold as an alternative currency would mean doubling or even tripling the price of Bitcoin.

The potential success of the cryptocurrency was also previously reported by the co-founder of Fundstrat Global Advisors Thomas Lee. According to Lee, the price of bitcoin by the end of 2021 will be able to “parabolic” rise to $90–100,000. At the same time, Lee stressed that the number of Bitcoin owners barely exceeds a million people compared to the billion-dollar market of other financial instruments.

At around 18:28 GMT, the BTC/USD pair is trading at $33,125 on Bitstamp after a rally above $34,500 on January 3.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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