Bitcoin (BTC) Price

$146,000 per Bitcoin Is An ‘Unsustainable’ Price Target for This Year: JPMorgan Chase Strategists

However, these targets of $50,000-$100,000 are achievable in the long term, it said.

According to JPMorgan Chase, as a competition to gold as an asset class, Bitcoin has the potential to reach as high as $146,000.

Bitcoin’s current market cap is around $597 billion and in order to reach yellow metal’s market cap levels, the digital asset’s price would have to surge about 370% in value from its current price of $32,000 BTC 9.35% Bitcoin / USD BTCUSD $ 34,342.10
$3,210.99 9.35%
Volume 66.98 b Change $3,210.99 Open $34,342.10 Circulating 18.59 m Market Cap 638.48 b
2 h FTX Now Allows to Short or Long Grayscale’s GBTC & ETHE and Bitwise 10 Crypto Index (BITW) 3 h BTC’s Break Above 2017’s ATH of $20,000 Converts One into a Bitcoiner 4 h Grayscale Officially Removes XRP from the Fund; Addresses with Large Amounts of XRP Drops Sharply
.

Read Also:   Bitcoin Flashes Signs of Strength as All-Time Highs are Back on the Table

The largest digital asset rallied more than 315% in 2020 and is expected to see even a bigger uptrend this year as institutions join in full force, but not according to the investment banking giant.

Interestingly, at its current market cap, Bitcoin is 9th largest asset, higher than Warren Buffett’s Berkshire Hathaway at 11th spot while JPMorgan is in the 15th place.

BTC needs to rise by 4.6 times in order to match the total private sector investment in the precious metal via exchange-traded funds (ETF), bars, and coins; but it all depends on institutional investment that will take some time, strategists led by Nikolaos Panigirtzoglou wrote in a note on Monday.

“A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term.”

However…

“… a convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.”

As we reported, just yesterday, Anthony Scaramucci, the founder of SkyBridge Capital launched the Bitcoin Fund. The company in its thesis noted that Bitcoin, which is better at being gold than gold itself, can climb to $535,000 to achieve the same market cap as bullion.

Read Also:   5 New Assets Hit the CoinDesk 20

The company also predicted a “tidal wave of institutional capital,” including hedge funds (One River Asset Management), public company treasurers (MicroStrategy), insurance companies (MassMutual), pension funds, RIAs, banks and brokerage firms, and a Bitcoin ETF.

For now, speculative long positions and an increase in wallets holding small amounts of BTC showing potential are seen as the headwinds by JPMorgan.

“While we cannot exclude the possibility that the current speculative mania will propagate further pushing the Bitcoin price up toward the consensus region of between $50,000-$100,000, we believe that such price levels would prove unsustainable.”




Download MAXBIT Android App, Your best source of all crypto news!
Google Play

Source link


6,000 per Bitcoin Is An 'Unsustainable' Price Target for This Year: JPMorgan Chase Strategists

by Anthony Beattie
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format