January 05, 2020 | AtoZ Markets – JP Morgan Chase, the largest US bank has suggested in a report that it will set its long-term price target for Bitcoin at $146,000, given that Bitcoin will grow into an asset class that replaces gold, Bloomberg reported.
Led by Nikolaos Panigirtzoglou, the analysts suggested that Bitcoin’s current market capitalization would have to rise by 4.6 times to create a theoretical price of $146,000
"The potential alternative to gold is a big upside for Bitcoin. Bitcoin currently has a market capitalization of about $575 billion, reaching its theoretical price target of $146,000. Will increase its market capitalization by a factor of 4.6, which is comparable to the amount of all gold-related investments the private sector makes, including ETFs and physical transactions," said JP Morgan's strategies.
JP Morgan Bitcoin prediction
JP Morgan strategists pointed out that Bitcoin price volatility needs to be reduced in order for institutional investors to be able to invest large amounts of money in Bitcoin. He emphasized that the $146,000 price target is just a long-term goal, as it will take at least a few years of process.
Read also: JPMorgan Chase Publishes Positive Report on Bitcoin
Bitcoin rose 300% in the last year to reach $29,000 at the end of the year. Price increases continued into the new year, rising to $34,420 in the first three days of the year, hitting a record high.
Hedge funds, investment firms, and some private companies in North America have become more active in buying Bitcoin, giving momentum to prices.
While the cryptocurrency industry has heard that prices will continue to rise, JP Morgan is seeing a large influx of "speculative enthusiasts" into the Bitcoin market, with large prices in the $50,000 to $100,000 range.
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