Bitcoin price could hit $ 146,000 in the long run if it succeeds in displacing gold, JPMorgan says

Drawing parallels between Bitcoin (BTC) and gold’s role as a haven for investors has been popular for years. Until now, The sharp difference between the total market capitalization of the two assets has largely limited these analogies. Gold, even after a sharp rise in Bitcoin price in December 2020, still controls 4.6 times the current market cap of Bitcoin of $ 5.85 billion.

The strategists of the American multinational bank, JPMorgan Chase, predict a possible scenario where Bitcoin could seriously take over its predecessor. On January 5th a report from Bloomberg cited a note from the bank’s strategists, led by Nikolaos Panigirtzoglouin which they outlined a way for that The total private sector investment in Bitcoin is equal to the value currently invested in gold either through one of the listed mutual funds or through bars and coins.

However, such a path depends crucially on it Bitcoin’s volatility converges with that of the precious metalthey stressed, and that will likely take some time:

“A displacement of gold as an ‘alternative’ currency means a great long-term advantage for Bitcoin […] A convergence of volatilities between Bitcoin and gold is unlikely and a process that will take several years for us. This implies that Bitcoin’s theoretical price target above $ 146,000 should be viewed as a long-term target and therefore an unsustainable price target for this year. “

Bitcoin price could hit $ 146,000 in the long run if it succeeds in displacing gold, JPMorgan says
Bitcoin price could hit $ 146,000 in the long run if it succeeds in displacing gold, JPMorgan says

As Cointelegraph reported yesterday, Bitcoin has survived a few days of restless and very volatile price movementswith a brief decline to $ 27,700 on Jan 4th, followed by a rebound to nearly $ 30,000. At the time of publication The coin trades at around $ 31,500. Yesterday’s slump was the worst since the coin regained its $ 20,000 price tag in December 2020.

Against this backdrop, continued volatility JPMorgan strategists identified strong positive signs for the cryptocurrencyThis indicates an accumulation of speculative long positions, but warns that it will remain difficult to read the investment outlook over the medium term:

“The valuation and position context has become much more difficult for Bitcoin at the beginning of the new year […] While we cannot rule out that the current speculative mania will spread further and drive the price of Bitcoin further into the consensus region between 50,000 and 100,000 US dollars. However, we believe that such a price level would prove unsustainable. “

January 1st, Bitcoin hit an all-time high against goldIt beat its previous high during the 2017 winter bull market. Last December The same team of strategists, led by Panigirtzoglou, already suggested that Bitcoin could absorb gold’s market share in the futureand sees a significant shift in institutional allocation towards cryptocurrency.

Meanwhile, A troubled trading climate has meant that the volumes on the major crypto exchanges have reached record levels. January 4th Binance, the world’s largest crypto exchange by trading volume, reported an all-time high of $ 80 billion in 24-hour trading. “To put this in perspective, from November 15, 2017 to December 15, 2017, the month before ATH [máximo histórico] in 2017 Binance achieved a trading volume of $ 20 billion in one month“, wrote the CEO of the exchange on Twitter.

Yet it was just as unprecedented The loss of futures traders totaling $ 190 million from Binance alone in just one hour, the greatest value of a massive sale to date on the platform.

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