Global investment bank JPMorgan has doubled its $ 146K bitcoin price prediction. The bank’s analyst explained that the price of the cryptocurrency could reach that level if volatility declines and institutional investors start investing in bitcoin more than gold in their portfolios.
JPMorgan Renews $ 146K Bitcoin Price Prediction
JPMorgan released an initial report on its new publication last week focusing on the prospects for alternative investments, including digital assets. The new report is expected to be published every two to three months.
The firm̵[ads1]7;s analyst Nikolaos Panigirtzoglou has predicted that the price of bitcoin could reach $ 146,000 in the long run, with a short-term price target of $ 73,000 for 2022.
“Digital assets are on a multi-year structural rise, but the current entry point looks unattractive in our opinion for a 12-month investment horizon as bitcoin appears to have returned to overbought territory,” he explained.
The JPMorgan analyst added: “The resurgence of inflation concerns among investors during September / October 2021 appears to have renewed interest in the use of bitcoin as an inflation hedge.” He reiterated his “bullish outlook” for the BTC team in October, writing:
Bitcoin’s lure as an inflation hedge may have been strengthened by gold’s lack of response in recent weeks to increased concerns about inflation.
Panigirtzoglou expects that bitcoin’s competition with gold will continue, especially as more millennials invest, given their preference for cryptocurrencies. “Given the size of the economic investment in gold, any such displacement of gold as an ‘alternative’ currency means a big upside for bitcoin in the long run,” he said in detail.
However, the JPMorgan analyst said that for the $ 146,000 price prediction to come true, the volatility of bitcoin must fall significantly, so that regular investors feel comfortable adding the cryptocurrency to their portfolios.
He noted that BTC’s volatility is currently around four to five times higher than gold. The report added that the current volatility is such a problem that the fair price of bitcoin is actually around $ 35,000.
However, the bank noted that bitcoin’s volatility is falling and that a price of 73,000 dollars looks reasonable as the exchange rate target for 2022. Furthermore, Panigirtzoglou said that bitcoin is wildly unpredictable and an increase over 146,000 dollars and a drop to less than 30,000 dollars are both possible.
The JPMorgan analyst added: “There is little doubt that cryptocurrencies and digital assets are more broadly an emerging asset class and thus on a multi-year structural trend,” and elaborates:
Digital assets have emerged as a clear winner after the pandemic, with retail investors joining institutional investors such as family offices, hedge funds and real-time asset managers, including insurance companies, to spread the asset class.
This is not the first time JPMorgan has predicted that the price of bitcoin could rise to $ 146K. The bank first set this bold long-term price target for bitcoin back in January, citing that bitcoin competes with gold as an alternative currency. The bank explained: “The market value of bitcoin at $ 575 billion currently needs to increase by x4.6 from here, implying a theoretical bitcoin price of $ 146,000, to match the total private sector investment in gold via ETFs or bars and coins. ”
JPMorgan recently explained that “the perception of bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs to bitcoin funds since September.” In addition, institutional investors are dumping gold for bitcoin and see it as better inflation hedging.
Meanwhile, JPMorgan CEO Jamie Dimon has been skeptical of bitcoin. In October, he said BTC was worthless and questioned the limited offer. He also said that bitcoin has no intrinsic value and regulators will regulate it. In May, the JPMorgan CEO personally advised people to stay away from crypto. Dimon said he does not care about bitcoin, but his customers are interested. Meanwhile, the company’s customers see crypto as an asset class they want to invest in, and the bank now offers various crypto investments to customers.
What do you think of JPMorgan’s prediction? Let us know in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the author is liable, directly or indirectly, for any damage or loss caused or alleged to have been caused by or in connection with the use of or reliance on the content, goods or services mentioned in this article.