Bitcoin price could reach as high $146k compared to gold.

JPMorganโ€™s study says, that bitcoinโ€™s price could possibly reach a record $146,000 as the competition between cryptocurrency & gold soars. Meanwhile, the firmโ€™s global strategist has compared the current bull run of bitcoin to the bull run of 2017. However He has warned of three risks that could affect bitcoinโ€™s perspective for 2021.

JPMorgan published a report last week on valuation of bitcoin and future perspective. We cannot ignore the possibility that the current speculative frenzy will cultivate further, pushing the bitcoin price up by $50k-$100k the analysts write, and believe that such price wonโ€™t be sustainable for long.


They further explained: Bitcoinโ€™s competition with gold has already started psychologically as about $3bn of inflows into the Grayscale Bitcoin trust and more than $7bn of outflows from Gold ETFs since October.

At present, the bitcoin market cap of $575bn will have to increase by 5 times from here, suggesting a potential bitcoin price of $146k, to equal the overall investment of the private sector in gold through ETFs or bars and coins. The analysts added: “The convergence of volatility between bitcoin and gold is unlikely to occur quickly and is a multi-year process in our minds. This implies that a long-term objective should be regarded as the above $146k theoretical bitcoin price target.


Present Bitcoin Bull Run Close to 2017 Says JPMorgan Strategist Nikolaos Panigirtzoglou, a senior global market analyst from JPMorgan, one of the study writers, also shared his bitcoin forecast for 2021 on CNBC’s Squawk Alley last week.


In my mind, there are three risks,” he began. The first is the clear consensus that exists at the moment that the price of bitcoin will hit $50,000 or $ 100,000 in 2021. From other asset classes, we know that it seldom materializes as originally imagined when there is a crowded consensus.
2. The second risk has to do with the speculative cash that exists among retail but also institutional investors, he added: At the moment, the speculative money among retail investors is not that unlike what we saw at the end of 2017.
Over the past few months, institutional investors have also built up speculative positions and we see that in the CME bitcoin futures. I think it’s wrong here to say that all the increase in Bitcoin this year was guided by institutional investment, and long-term institutional investors are responsible for all that institutional buying. Speculative institutional investors, too, are responsible.
3. The third factor he tackled was whether bitcoin will be used by more
individuals and will be welcomed by more retailers in 2021. The JPMorgan strategist is still not persuaded, despite payment giant Paypal promising to allow bitcoin payments at its 28 million merchants worldwide.

The acceptance of bitcoin as a payment mechanism, as a currency for payments, is subject to regulatory restrictions and approvals.’ As a result, it would be hard here to believe that we’re going to see a huge improvement on that front next year.


The JPMorgan strategist concluded: “I believe the view of Bitcoin’s digital gold has changed this year. But it’s far from seeing much of a change here as a payment currency, but again, we don’t need the bitcoin here to become the payment currency for the price to go up.

Do you agree ? In the comments section below, let us know.

Disclaimer: The views and opinions expressed in the blogs are those of the authors & Blockchain analytic companies and do not necessarily reflect the official policy or position of coinbaazar.com or any of its employees or associates. Assumptions made in the analysis are not reflective of the position of any entity other than the author (s) since we are critically thinking human beings; these views are always subject to change revision and rethinking at any time. Please do not hold coinbaazar.com to them in perpetuity. 

About the author

Comments

  1. After looking into a number of the blog articles on your web site, I seriously like your technique of writing a blog. I added it to my bookmark webpage list and will be checking back soon. Please visit my website too and tell me what you think.

  2. I always used to read article in news papers but now as I am
    a user of internet thus from now I am using net
    for articles or reviews, thanks to web.

  3. You’re so awesome! I do not believe I’ve read through anything like that before. So nice to discover another person with unique thoughts on this issue. Really.. many thanks for starting this up. This site is one thing that is required on the web, someone with some originality!

  4. You have made some really good points there.
    I looked on the net for more info about the issue and
    found most individuals will go along with your views on this website.

  5. Hi there! I could have sworn Iโ€™ve visited this blog before but after going through many of the articles I realized itโ€™s new to me. Nonetheless, Iโ€™m definitely happy I discovered it and Iโ€™ll be bookmarking it and checking back regularly!

  6. Exceptional post but I was wanting to know if you could write a litte more
    on this topic? I’d be very thankful if you could elaborate a little bit further.
    Kudos!

  7. Hi there, There’s no doubt that your website might be having browser compatibility
    issues. When I look at your website in Safari, it looks fine however, when opening in I.E., it’s
    got some overlapping issues. I simply wanted to give you a quick heads up!
    Besides that, great website! 0mniartist asmr

  8. Hello, i think that i saw you visited my site so i came to โ€œreturn the favorโ€.I’m trying to find things to enhance my website!I
    suppose its ok to use a few of your ideas!!
    asmr 0mniartist

  9. Hi there, this is a great article. I was looking for relevant information related to e-wallet and came across this article. So glad to know about this piece of information. Learn more for amazing beneficial blogs.

  10. Superb website you have here but I was curious if you knew of any discussion boards that cover the same topics discussed in this article?
    I’d really love to be a part of community where I can get comments from other experienced individuals that share the same
    interest. If you have any suggestions, please let me know.

    Please join our live chat room to discuss , on blog home page

Leave a Reply

Your email address will not be published. Required fields are marked *

Social media & sharing icons powered by UltimatelySocial