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JP Morgan predicts Bitcoin price to hit $146,000

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Bitcoin fell sharply on Monday, losing ground from a record high of $34,800

US-based multinational investment bank JP Morgan has made a bold prediction when it comes to bitcoin. According to the bank, bitcoin prices will hit $146,000 in the long term.

Comparing Bitcoin to traditional store of value assets such as gold, lead analyst Nikolaos Panigirtzoglou suggested that Bitcoin’s current market capitalisation of around $580 billion would have to rise by 4.6 times which would create a theoretical price of $146,000.

In a note, Nikolaos wrote, “A crowding out of gold as an ‘alternative’ currency implies a 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. 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.”

Bitcoin fell sharply on Monday, losing ground from a record high of $34,800. Bitcoin’s record high came less than three weeks after it crossed $20,000 for the first time in December last year. The world’s biggest cryptocurrency more than quadrupled in price last year.

Blockstream chief executive officer Adam Back said that bitcoin hitting the $1 trillion market cap by 2025 is conservative. He expects bitcoin to hit the $1 trillion mark by 2022 or even sooner. A report by Yassine Elmandjra, a crypto-asset analyst at investment advisor Ark, in its September report said that Bitcoin will hit the market cap of $1 trillion to $5 trillion by 2030 at the latest.

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