JPMorgan’s $146,000 Bitcoin Price Scenario

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term price is expected to take advantage of the money outflow from the gold market, says JPMorgan. One of the world’s leading investment banks mentioned in a note that the long-term price target of Bitcoin stands at around $146,000.

JPMorgan strategist, Nikolaos Panigirtzoglou wrote in a note that the Bitcoin price would be able to get benefits of money outflows from gold-related investment products. Panigirtzoglou mentioned that the recent rally in BTC made it more challenging for analysts to value the cryptocurrency asset.

The strategist outlined the competition between Bitcoin and Gold as an alternative currency and noted that BTC needs to jump at least 400% to reach the price target of $146,000. He mentioned that it will be a huge task for BTC to match the total private sector investment in gold-related investment products via exchange-traded funds or bars and coins.

"Crowding out of gold as an ‘alternative’ currency implies a big upside for Bitcoin over the long term. However, 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,” Panigirtzoglou mentioned in the note.

Bitcoin Price Valuation

The recent price Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in Bitcoin has made it difficult for anyone to predict the next move of the world’s largest cryptocurrency. BTC price breached $30,000 earlier this week and reached an all-time high of $34,000. Yesterday, the price experienced a correction when BTC crashed to $28,000. However, the price jumped later and as of writing, BTC is hovering at around $31,000.

“The valuation and position backdrop has become a lot more challenging for Bitcoin at the beginning of the New Year. While we cannot exclude the possibility that the current speculative mania will propagate further pushing the Bitcoin price up toward the consensus region of between $50,000-$100,000, we believe that such price levels would prove unsustainable,” the note states.