Analysts at JPMorgan bank admit the possibility of bitcoin price rise above $ 146,000. In a note to clients, strategist Nikolaos Panigirtzoglu wrote on Monday that this will become possible if the capital outflow from gold to cryptocurrency continues. However, the process will be lengthy, he warns.
“The convergence of volatility between bitcoin and gold is unlikely to happen quickly. We believe this will be a multi-year process. This suggests that a theoretical target above $ 146,000 for Bitcoin should be considered long-term and therefore unattainable this year, ”writes Panigirtzoglu.
To achieve this goal, bitcoin, an asset with a capitalization of $ 580 billion, from current levels must grow four and a half times. That would equate it with private sector investment in gold through exchange-traded funds (ETFs) or bullion and coins, the analyst said.
At the same time, JPMorgan sees an obstacle to the continued rapid rise in bitcoin in the short term in the form of an increase in the volume of long speculative positions.
“Valuation and positional context for Bitcoin has become much more problematic in the new year. While we cannot rule out the possibility that the current speculative mania will continue to develop, pushing the bitcoin price up to the next consensus zone between $ 50,000 and $ 100,000, we believe that such price levels will prove volatile, ”the authors add.
It is noteworthy that at the beginning of November, with a price of about $ 14,000, Panigirtsoglu, based on positional indicators and technical factors, announced that the bitcoin market was overbought by inertial traders, which, according to his expectations, should have caused a period of profit fixation and a reversal of cash flows, but by the end of the month he was forced to abandon his prediction.
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