JPMorgan Chase reiterated the long-term price target of $146,000 for Bitcoin: expected to reach half next year
JPMorgan Chase reiterated in a recent report that the price of Bitcoin is expected to reach $146,000 in the long-term, Provided that the volatility subsided significantly and financial institutions began to prefer Bitcoin over gold in their investment portfolios. This target price is about 130% higher than Bitcoin’s current price of less than $62,500.
JPMorgan Chase believes that Bitcoin, as a tool to hedge against inflation, is increasingly competing with gold for investors’ attention, and pointed out that Bitcoin is also a scarce product, that is, even if inflation erodes other assets The value of these assets will also rise.
Nikolaos Panigirtzoglou, a strategist at JPMorgan Chase, said: “In the period from September to October 2021, investors’ concerns about inflation reappeared, and there seems to be a renewed interest in using Bitcoin to hedge against inflation.”
He said: “In recent weeks, gold has failed to respond to rising inflation concerns, which may enhance the attractiveness of Bitcoin as an inflation hedge.” Inflation in the United States is currently at a 13-year high and global inflation is also soaring. .
Panigirtzoglou said that given the preference of “millennials” for cryptocurrencies, there is “no doubt” that the competition between Bitcoin and gold will continue as they become stronger in the investment field.
He said: “Considering the scale of financial investment in gold, any outflow from gold to’alternative’ currencies means that Bitcoin has a lot of room for long-term upside.” He hinted that Bitcoin’s long-term target price is 14.6. Ten thousand U.S. dollars.
However, JPMorgan Chase stated that in order to achieve a price of $146,000, the huge volatility of Bitcoin must be significantly reduced, so that investors who are bound by the rules can safely add Bitcoin to their investment portfolios.
The bank pointed out that Bitcoin’s volatility is currently about four to five times that of gold. Before the influx of institutional investors, its volatility must drop significantly.
JPMorgan Chase has issued a major warning about its “theoretical” target price, saying that Bitcoin’s volatility is a major obstacle to continued price increases. The bank said that during the ups and downs of April and May, Bitcoin’s reputation among institutional investors took a hit.
In fact, JPMorgan Chase believed at the time that Bitcoin was so volatile that its fair price should actually be around $35,000. However, the bank now says that Bitcoin’s volatility is declining and the price of $73,000 next year looks reasonable.