With bitcoin still progressing with its titanic bull-run, many big banks are now carefully watching out for the top cryptocurrency. JPMorgan Chase analysts have boldly predicted that bitcoin price might go on to reach $146,000 by the end of this year. With bitcoin trading at $30,000 during the time of writing, JPMorgan strategists have been grinding the figures and cross-checking bitcoin against traditional assets such as gold.
JPMorgan Chase analysts, spearheaded by Nikolaos Panigirtzoglou, implied that for bitcoin price to achieve $146,000 by the end of the year theoretically, its total market cap of $580 billion will have to increase by up to 4.6 folds. This figure would correspond to the entire amount invested by private sectors in gold through exchange-traded funds or bars and coins, as per Bloomberg’s report.
Notably, JPMorgan made a similar prediction back in 2020, with its analysts proposing that the price of BTC might increase tenfold to rival gold for institutional investors. The American bank’s recent prediction implies that opting out of gold as a substitute currency would massively benefit bitcoin in the long run. Nonetheless, the process could take several years as the confluence between the two assets’ volatility is implausible.
Major banks making bold BTC predictions
JPMorgan has had a warm and cold affair with the world’s top cryptocurrency over the years. The Wall Street financial giants certainly see a bitcoin price rising in the long run with an increase in institutional investments and funds like Grayscale’s Bitcoin Trust. Notably, Grayscale’s Bitcoin Trust just reached a new peak with assets under management just a little below $23 billion.
Moreover, JPMorgan analysts have suggested that BTC could keep surging as FOMO escalates, although they would be untenable at such levels:
“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.”
Bitcoin price overview
The price of Bitcoin went down by about 33 percent within a few hours yesterday but has since recovered after the Office of the Comptroller of the Currency (OCC), which is charged with overseeing financial institutions banks to use stablecoins and blockchain networks for payments. Since then, bitcoin price has climbed above the $30,000 mark, and Ethereum has gained 12 percent.
Additionally, two giant financial institutions have confirmed their entry into the bitcoin market within the last 24 hours. A Singapore-based hedge-fund manager, Three Arrows Capital, disclosed on January 4th that it had invested over $1billion in Grayscale’s Bitcoin Trust. Simultaneously, SkyBridge Capital management firm invested $25.3 million to establish the SkyBridge Bitcoin Fund LP.
The news indicates that institutional capital is now entering the bitcoin industry to speculate and establish a trustworthy and regulated investment foundation. As per JPMorgan Chase and others, the long-term perspective remains bullish for bitcoin, and price corrections will act as entry points for investors and institutions.
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