JPMorgan’s analysts have a long-term price target of $146,000 for Bitcoin.
This objective would be achieved through capital outflows from other asset classes, particularly gold.
JPMorgan has so far been extremely skeptical of Bitcoin.
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JPMorgan and its CEO Jamie Dimon have seemed skeptical of Bitcoin for years, but this has not stopped the company from speculating on a bullish target.
With the increased institutional adoption of Bitcoin due to global economic and social factors, the major cryptomony can no longer be ignored. According to JPMorgan analysts via Bloomberg, gold could continue to lose market share:
Bitcoin could have the potential for substantial additional gains in the long term as it competes with gold for investment flows, according to JPMorgan Chase & Co.
As investors begin to see Bitcoin as a better store of value, a better trading system and a better inflation hedge than gold, large-scale purchases may continue.
Analysts believe that Bitcoin still has serious upside potential:
An ousting of gold as an “alternative” currency “implies a big advantage for Bitcoin in the long run, […] a convergence of volatilities between Bitcoin and gold is unlikely to occur quickly and is in our view a multi-year process. This implies that Bitcoin’s theoretical price target of $146,000 above should be considered a long term goal, and therefore an unsustainable price target for this year.
While analysts do not anticipate a rapid rise in prices to close to $150,000, they believe that a gradual increase in cash outflows from gold and other assets will inevitably find its way to the BTC.
JPM traders in London were buying as early as 2013. I know that someone I know built them a trading algorithm that could not be detected by the bosses because they were not allowed to trade it. These traders complained that @maxkeiser continued to move the price, forcing them to trade without the bot
JPMorgan is not the only one making the decisions
For some users, this may seem like a bold prediction. The company is one of the largest financial institutions in the world and is not the first major player to think this way.
In a recent interview with YouTuber Casey Adams, Tyler Winklevoss, Bitcoin billionaire and co-founder of the Gemini exchange, predicted a Bitcoin price of $500,000 for similar reasons.
Winklevoss explains that Bitcoin is a fundamentally stronger store of value and inflation protection than gold. Knowing that gold has a market capitalization of $9 trillion, Bitcoin will probably exceed it one day.
Winklevoss added that if Bitcoin were to establish itself as a traditional value transfer and not just a store of value, it could be worth even more because it competes with the global fiat market.
These are bold long-term predictions, but they don’t seem implausible, at least according to JPMorgan.
If institutions continue to choose Bitcoin over gold, proof-of-work cryptography may eventually come close to the long-term forecasts given.