The surge in bitcoin price may not be over any time soon. Latest forecast by investment banking giant JPMorgan has called a long-term bitcoin price target of over $146,000 based on the speculation that the cryptocurrency will grow in popularity as an alternative to gold, Bloomberg reports.
“A crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” strategists led by Nikolaos Panigirtzoglou wrote in a note on Monday. “Bitcoin’s [current] market capitalization of around $575 billion would have to rise by 4.6 times – for a theoretical Bitcoin price of $146,000 – to match the total private sector investment in gold via exchange-traded funds or bars and coins.”
JPMorgan bitcoin price JPMorgan bitcoin price
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According to the analysts the convergence of bitcoin and gold volatilities is a “multi-year process” and suggests that the $146,000-plus target is a long-term objective.
Bitcoin price increased by 300% to $29,000 in 2020 and extended gains to a new record price of $34,420 in the first three days of the new year. The cryptocurrency has gained over 160% in the last three months alone, helped along by increased institutional participation.
However, while the crypto community expects the price volatility to continue, JPMorgan sees signs of “speculative mania” and believes further big gains towards the region of $50,000-$100,000 may be unsustainable in the near term.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer