JPMorgan Doubles As Bitcoin Price Predicts $146K – Markets & Prices Bitcoin News – News Couple
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JPMorgan Doubles As Bitcoin Price Predicts $146K – Markets & Prices Bitcoin News


Global investment bank JPMorgan doubled its Bitcoin price forecast at $146,000. The bank’s analyst explained that the price of the cryptocurrency could reach this level if its volatility calms down and institutional investors start investing more in bitcoin than gold in their portfolios.

JP Morgan Renews Bitcoin Price Predictions of $146,000

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

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

“Digital assets are in a multi-year structural bull run, but the current entry point looks unattractive in our view for a 12-month investment horizon where bitcoin appears to be back in overbought territory,” he explained.

“The resurgence of inflation fears among investors during September/October 2021 appears to have renewed interest in using bitcoin as an inflation hedge,” the JPMorgan analyst added. Echoing his “bullish forecast” for Bitcoin in October, he wrote:

Bitcoin’s appeal as an inflation hedge may be boosted by the failure of gold in recent weeks to respond to rising inflation concerns.

Panigertzoglou anticipates that bitcoin’s competition with gold will continue, especially as more millennials invest, given their preference for cryptocurrencies. “Given the scale of financial investment in gold, any crowding out of gold as an ‘alt’ currency would mean a huge rally for bitcoin in the long run,”

However, the JPMorgan analyst said that for the $146,000 price prediction to come true, bitcoin’s volatility would have to drop significantly, so that rule-bound investors feel comfortable adding the cryptocurrency to their portfolios.

He noted that BTC’s volatility is currently about four to five times higher than that of gold. The report added that the current volatility is so problematic that the fair price of Bitcoin is actually around $35,000.

However, the bank noted that bitcoin’s volatility is declining and that the $73,000 price tag appears reasonable as the 2022 target price. Furthermore, Banjirtzoglu said that bitcoin is highly unpredictable and that a rally above $146,000 and a drop below $30,000 is possible.

“There is no doubt that cryptocurrencies and digital assets more broadly are an emerging asset class and therefore in a multi-year structural uptrend,” added the JPMorgan analyst, explaining:

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

This is not the first time that JPMorgan has predicted that the price of Bitcoin could rise to $146K. The bank first set this bold long-term price for bitcoin in January, noting that bitcoin is competing with gold as an alternative currency. The bank explained: “Bitcoin’s market capitalization at currently $575 billion should increase by x4.6 from here, which means a theoretical bitcoin price of $146K, to match the total private sector investment in gold via ETFs or bullion and coins.” “

JPMorgan recently explained that “the perception of bitcoin as a better inflation hedge than gold is the main reason for the current rally, leading to a shift away from gold ETFs since September.” Moreover, institutional investors are dumping gold for bitcoin and see it as a better way to hedge against inflation.

Meanwhile, JPMorgan CEO Jamie Dimon has remained skeptical about bitcoin. In October, he said BTC was worthless and questioned the limited supply. He also said that bitcoin has no intrinsic value and that regulators will get out of it. In May, the head of JPMorgan personally advised people to stay away from cryptocurrency. Damon said he is not interested in bitcoin but his clients are. Meanwhile, the company’s clients see cryptocurrency as an asset class they would like to invest in, and the bank is now offering several crypto investments to clients.

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

photo credits: Shutterstock, Pixabay, Wikicommons

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