Investment banking giant JPMorgan has predicted a long-term BTC price of $146,000 according to a Bloomberg report. The prediction by JPMorgan was based on the assumption that the cryptocurrency could grow in popularity as an alternative to gold.
A lot depends on Volatility
One of JPMorgan’s strategists Nikolaus Panigirtzoglou believes that BTC will soon equal the value that is currently invested in Gold. The equalization according to Panigirtzoglou would happen either through exchange-traded funds, or bars and coins. The JPMorgan strategist, however, noted that BTC rising to gold status in terms of value invested would largely depend on BTC’s volatility converging with that of gold.
According to Panigirtzoglou;
“A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term […] a convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process”.
As he went on to say later, it all implies that the $146,000 should be considered a long term target. Bitcoin’s volatility was a good mention given the asset’s price action over the last couple of days. The first of January’s all time high saw a major pullback on January 4 to $27,700 which was soon followed by a bounce back of $30,000. The price is now about to touch $38,400 which is a new record high.
Strong signs of a sustainable rally
Despite the volatility, JPMorgan strategists like Panigirtzoglou see strong signs of a long term rally pointing to an accumulation of speculative long positions. With their long-term position well-articulated, they went on to state that predicting BTC in the medium term is difficult. Though ambitious BTC prices have been predicted, nobody can tell what price action may look like in the next three to four months. As institutions like PayPal and BlackRock continue to invest attention into the space, the general outlook seems quite positive in the long-term.
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