The global investment bank JP Morgan Chase has doubled its Bitcoin price forecast of $146,000. The bank’s analyst explained that if its volatility subsides and institutional investors begin to invest more in Bitcoin rather than gold in their portfolio, the price of the cryptocurrency may reach that level.
JPMorgan Chase updates its $146,000 bitcoin price forecast
JPMorgan Chase released the first report of its new publication last week, focusing on alternative investment prospects including digital assets. The new report is expected to be released every two to three months.
The company’s analyst Nikolaos Panigirtzoglou predicts that in the long run, the price of Bitcoin may reach US$146,000, with a short-term price target of US$73,000 in 2022.
“Digital assets are in the midst of structural gains for many years, but we think the current entry point does not seem attractive for a 12-month investment period, because Bitcoin seems to have returned to the overbought zone,” he explained.
JPMorgan Chase analysts added: “Investors’ concerns about inflation reappeared in September/October 2021, which seems to rekindle interest in using Bitcoin as an inflation hedging tool.” Reiterated his “Bullish outlook” for Bitcoin In October, he wrote:
Bitcoin’s appeal as an inflation hedging tool may have been strengthened by gold’s failure to respond to rising inflation concerns in recent weeks.
Panigirtzoglou expects that the competition between Bitcoin and gold will continue, especially as more and more millennials invest because they prefer cryptocurrencies. “Considering how large the financial investment in gold is, any behavior that squeezes out gold as an’alternative’ currency means that Bitcoin has long-term upside potential,” he detailed.
However, JPMorgan Chase analysts stated that to achieve the $146,000 price forecast, Bitcoin’s volatility must be significantly reduced, so investors subject to rules can safely add cryptocurrencies to their portfolios.
He pointed out BitcoinThe current volatility is about four to five times that of gold. The report added that the current volatility is a problem, and the reasonable price of Bitcoin is actually around $35,000.
Nevertheless, the bank pointed out that Bitcoin’s volatility is declining, and the price of $73,000 as a 2022 price target looks reasonable. In addition, Panigirtzoglou stated that Bitcoin is very unpredictable, and it is possible to soar above US$146,000 and fall below US$30,000.
JPMorgan Chase analysts added: “There is no doubt that cryptocurrencies and digital assets are more broadly an emerging asset class and therefore are in a structural upward trend for many years,” detailed:
After the pandemic, digital assets have become clear winners, and retail investors have joined the ranks of institutional investors such as family offices, hedge funds, and real currency asset management companies including insurance companies to spread asset classes.
This is not the first time JPMorgan Chase has predicted that the price of Bitcoin may rise to $146,000.The bank first made this bold Long-term price target As early as January, Bitcoin used Bitcoin as an alternative currency to compete with gold. The bank explained: “The current Bitcoin market value of USD 575 billion must rise 4.6 times from here, which means that the theoretical price of Bitcoin is USD 146,000 to match the private sector’s total investment in gold through ETFs or gold bars and gold coins.”
JPMorgan Chase recently explain “The belief that Bitcoin is a better inflation hedge than gold is the main reason for the current rise, triggering the shift from gold ETFs to Bitcoin funds since September.” In addition, institutional investors Dumping gold for Bitcoin Think of it as a better inflation hedge.
At the same time, JPMorgan Chase CEO Jamie Dimon has been skeptical of Bitcoin.October, he said Bitcoin used to be Worthless And questioned its limited supply.He also said that Bitcoin has No intrinsic value Regulators will supervise it. In May, the boss of JP Morgan Chase personally Suggest People stay away from cryptocurrency.Dimon said he doesn’t care about Bitcoin, but his customers care Interested inAt the same time, the company’s customers see crypto as an asset class They want to invest Laihe Bank now offers a variety of Crypto investment To customers.
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