Overzealous at JP Morgan?
Price predictions of varying degrees of fancy have always been part of the tumultuous history of Bitcoin (BTC). Today, however, it is the very serious JP Morgan Chase & Co, one of the world’s largest banks, that sees BTC well over $100,000.
When Bitcoin Trader competes with gold as a safe-haven asset
Investment strategists from the mega-bank JP Morgan shared their analysis of the current Bitcoin craze with the Bloomberg newspaper.
The opinion of the experts led by Nikolaos Panigirtzoglou is final. The king of cryptos has the potential to compete directly with gold as an asset class.
Bitcoin could thus become a recognized reserve of value, on a par with the precious metal. Even if stabilization of the price of Bitcoin would first be necessary, in a „process of several years“, according to experts, this would result in the price of BTC exploding:
„… the theoretical target of $146,000 for the price of bitcoin must be considered a long-term objective, and therefore an unsustainable price target for this year. »
The term „unsustainable“ should be emphasized, because it implies that JP Morgan’s teams do not rule out the possibility that the BTC could, as early as this year 2021, make a bullish fuse at these price levels, as unprecedented as they are staggering. This would still require an increase of more than 350% compared to the current price.
A BTC price between $50,000 and $100,000 in 2021?
Beware, however, of over-optimism! JP Morgan’s analysts warn that the very sharp rise in prices in recent weeks could lead to a „breathing“ (including a „correction“):
„The [current] valuation and the context of the [too many buyers] positions make the start of a new year perilous for Bitcoin. »
Thus, while speculation could push the BTC to a „consensus price between $50,000 and $100,000“, this latter price level may also be too ambitious to hold for now.
At the same time, when you consider that only 2 or 3 years ago, most banks were systematically denigrating Bitcoin and cryptos, these now very optimistic forecasts already offer quite a bearish/bullish contrast. Will the future prove JP Morgan’s strategists right? In any case, this time the predictions come from a big name in finance.