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JPMorgan: “Bitcoin will hit $ 146,000 in the long term”

According to a team of JPMorgan analysts led by Nikolaos Panigirtzoglou, in the long term, the bitcoin price could reach $ 146,000.

In the report, the researchers note that $ 7 billion has been withdrawn from exchange-traded funds (ETFs) into gold since mid-October 2020. During the same period, the inflow of money into the Grayscale Bitcoin Trust (GBTC) exceeded $ 3 billion. This indicates that investors have become prefer bitcoin over gold investments.

“There is no doubt that this competition with gold as an ‘alternative’ currency will continue in the coming years. Moreover, millennials who prefer “digital gold” to traditional precious metal will play an increasingly significant role in the market, ”analysts said.

The volume of privately held gold bars and coins, as well as ETF investments in gold, excluding gold in central bank vaults, is 42,600 tons, or $ 2.7 trillion. Bitcoin’s market capitalization is now $ 575 billion, so gold only needs to increase its value by 4.6 times. This gives a price tag of $ 146,000.

At the same time, if at the time of the publication of the report the capitalization of bitcoin was $ 575 billion, now it has already reached $ 692 billion. JPMorgan researchers emphasize that the forecast is highly dependent on the volatility of bitcoin, which is gradually decreasing and is approaching the volatility of gold.

“A theoretical target price for bitcoin above $ 146,000 should be seen as a long-term target. We cannot rule out that today’s speculative sentiment will push the bitcoin rate in the range from $ 50,000 to $ 100,000, but we do not believe that the price can stay in this range for a long time, ”analysts write.

Note that on the morning of January 7, the capitalization of the cryptocurrency market for the first time in history reached $ 1 trillion 15 billion. At the same time, the dominance of BTC in the market is 68.5%.

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