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JPMorgan: Bitcoin could surge to $146 000 long term

‘A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term’ – strategists.
Image: Chris Ratcliffe, Bloomberg

Bitcoin has the potential to reach $146,000 in the long term as it competes with gold as an asset class, according to JPMorgan Chase & Co.

Bitcoin’s market capitalisation of around $575 billion would have to rise by 4.6 times — for a theoretical price of $146,000 — to match the total private sector investment in gold via exchange-traded funds or bars and coins, strategists led by Nikolaos Panigirtzoglou wrote in a note. But that outlook depends on the volatility of Bitcoin converging with that of gold to encourage more institutional investment, a process that will take some time, they said.

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

Read: Ether cracks $1 150, impelled by the bitcoin ‘slingshot effect’

Bitcoin rose 1.7% to $31,567 as of 10:31 a.m. in London. The wider Bloomberg Galaxy Crypto Index added 0.9%.


On Monday, Bitcoin slid as much as 17%, the biggest drop since March, after breaching $34,000 for the first time over the weekend. The swings are a reminder of the famed volatility of the largest cryptocurrency, whose price has more than quadrupled over the past year.

More institutions and noted investors, from Paul Tudor Jones to Scott Minerd and Stan Druckenmiller, have either started allocating funds into Bitcoin or have said they’re open to doing so. While some argue that the cryptocurrency offers a hedge against dollar weakness and inflation risk in a world awash with fiscal and monetary stimulus, others say retail investors and trend-following quant funds are pumping up an unsustainable bubble.

For now, JPMorgan sees headwinds for the largest cryptocurrency, with indicators like a buildup of speculative long positions and an increase in investment wallets holding small amounts of Bitcoin showing potential froth.

“The valuation and position backdrop has become a lot more challenging for Bitcoin at the beginning of the New Year,” the strategists wrote. “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.”

© 2021 Bloomberg L.P.

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It does not make sense for a Financial institution to show support for a virtual currency.

If it is not regulated by government (US, EU, JPN, CHINA) then stay clear of it. You just need one of the EU, US or CHINA to disallow it or regulate it and it will come tumbling down.

I wonder how many people actually monitor it daily like an addiction?

How can anything possibly beat Gold, Platinum or Diamonds?

It makes sense to those like me that has been making an absolute killing. Withdrew my profits and keeping my seed money in it. If I lose my seed money I’ve actually lost nothing.

@Allistair. Well done. Hence I presume you resigned your day-job?

If you did not as yet, it means you’re not making a killing.

Why not loan say R200-R500K from the stupid bank and build that to say a few million in crypto. We all can do that.

End of comments.

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