Bitcoin News and Finance
JPMorgan Doubles Down on Bitcoin Price Prediction of $146K Skip to main content

JPMorgan Doubles Down on Bitcoin Price Prediction of $146K

JPMorgan Doubles Down on Bitcoin Price Prediction of $146K

Global investment bank JPMorgan has doubled down on its bitcoin price prediction of $146K. The bank’s analyst explained that the price of the cryptocurrency could reach that level if its volatility subsides and institutional investors start investing in bitcoin more than gold in their portfolios.

JPMorgan Renews $146K Bitcoin Price Prediction

JPMorgan released an inaugural report of its new publication last week focusing on the outlook for alternative investments, including digital assets. A new report is expected to be released every two to three months.

The firm’s analyst Nikolaos Panigirtzoglou has predicted that the price of bitcoin could reach $146K in the long term, with a short-term price target of $73,000 for 2022.

“Digital assets are on a multi-year structural ascent, but the current entry point looks unattractive in our opinion for an investment horizon of 12 months as bitcoin appears to have returned to overbought territory,” he explained.

The JPMorgan analyst added: “The re-emergence of inflation concerns among investors during September/October 2021 appears to have renewed interest in the usage of bitcoin as an inflation hedge.” Reiterating his “bullish outlook” for BTC made in October, he wrote:

Bitcoin’s allure as an inflation hedge has perhaps been strengthened by the failure of gold to respond in recent weeks to heightened concerns over inflation.

Panigirtzoglou expects bitcoin’s competition with gold to continue, especially as more millennials invest, given their preference for cryptocurrencies. “Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” he detailed.

However, the JPMorgan analyst said that for the $146,000 price prediction to come true, bitcoin’s volatility would have to fall significantly, so that rules-bound 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 bitcoin’s fair price is actually around $35,000.

Nonetheless, the bank noted that bitcoin’s volatility is falling and that a price of $73,000 looks reasonable as the price target for 2022. Furthermore, Panigirtzoglou said that bitcoin is wildly unpredictable and a surge above $146,000 and a plunge to below $30,000 are both possible.

The JPMorgan analyst added, “There is little doubt that cryptocurrencies and digital assets more broadly are an emerging asset class and thus on a multi-year structural uptrend,” elaborating:

Digital assets have emerged as a clear winner post the pandemic, with retail investors joining institutional investors such as family offices, hedge funds and real money asset managers including insurance companies in propagating the asset class.

This is not the first time JPMorgan has predicted that the price of bitcoin could rise to $146K. The bank first made 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 cap of bitcoin at $575 billion currently would have to rise by x4.6 from here, implying a theoretical bitcoin price of $146K, 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 into bitcoin funds since September.” Moreover, institutional investors are dumping gold for bitcoin seeing it as a better inflation hedge.

Meanwhile, JPMorgan CEO Jamie Dimon has remained skeptical about bitcoin. In October, he said BTC was worthless and questioned its limited supply. He also said that bitcoin has no intrinsic value and regulators will regulate the hell out of it. In May, The JPMorgan boss personally advised people to stay away from crypto. Dimon said he does not care about bitcoin but his clients are interested. Meanwhile, the firm’s clients see crypto as an asset class that they want to invest in and the bank is now offering various crypto investments to clients.

What do you think about JPMorgan’s prediction? Let us know in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory