Analysts at investment bank JPMorgan forecast bitcoin to rise to $ 146,000 amid inflationary market fears and the crowding out of gold as a defensive asset.
According to Bloomberg, citing a JPMorgan report, a team of analysts led by Nikolaos Panigirtzoglou predicts that Bitcoin could reach $ 146,000 in the long term. The report notes that investors fear inflation again, which is why they started using Bitcoin as a hedge against risk.
“The crowding out of gold as an ‘alternative’ currency speaks to the large upside potential for the price of bitcoin in the long term. It is unlikely that this will happen quickly, this is a long-term process. A theoretical target price for bitcoin above $ 146,000 should be seen as a long-term target that is impossible in the coming year, ”the report says.
According to JPMorgan analysts, Bitcoin’s competition with gold will continue as more millennials invest in cryptocurrencies. Considering how large the financial investment in gold is, any displacement of the precious metal as an “alternative” currency implies great upside potential for Bitcoin in the long term.
JPMorgan analysts reported last month that more than $ 10 billion have been withdrawn from gold ETFs since the beginning of the year, and more than $ 20 billion have been placed in bitcoin funds. Canadian entrepreneur Kevin O’Leary said in the same month that he has recently invested more into cryptocurrencies than gold. At the same time, in 2019, he believed that investing in bitcoin was pointless.