JPMorgan has called a long-term Bitcoin price target of over $146,000, BTC will grow as an alternative to gold

The Bitcoin price could eventually hit $146,000 if institutional investors keep adding it to their portfolios.


BTC/USD 4-hour chart | Souce: TradingView

JPMorgan called a long-term Bitcoin price target of over $146,000

The megabank’s strategists said in a research note that Bitcoin is in for a long-term surge if it continues to give gold a run for its money as an “alternative” currency for investors.

The Bitcoin price would hit the $146,000 mark if the cryptocurrency’s total market value grows by 4.6 times to match the total private-sector investment in gold through bars, coins, or exchange-traded funds.

But such a long-term rise would depend on Bitcoin’s volatility converging with gold’s, which the bank doesn’t expect to happen any time soon.

JPMorgan stated:

“A 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.”

Bitcoin has swung wildly in recent days amid a massive rally fueled by increased interest from big investors seeking protection against inflation, as well as hopes that it will become a more mainstream digital payment method.

The price of one Bitcoin suffered its biggest intraday loss since March on Monday, falling as much as 17% just a day after hitting an all-time high above $34,000. It was trading up 3.1% at $31,841.18 as of 8:17 a.m. Tuesday.

Despite the possibility of long-term growth, JPMorgan sees Bitcoin coming up against roadblocks in the short term thanks to a large amount of speculation in the cryptocurrency market.

JPMorgan stated:

“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.”

You can see the BTC price here.

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