When Bitcoin rises above $ 30,000 again, the big banks are paying attention to this upward trend and some even make bold price predictions. Strategists at the leading US bank calculate the numbers and compare Bitcoin to traditional value assets such as gold.
Analysts led by Nikolaos Panigirtzoglou have suggested that the current market value of Bitcoin from about $ 580 billion should increase 4.6 times to create a theoretical price of $ 146,000.
Big prediction in Bitcoin
JP Morgan made a similar forecast in November 2020 when analysts at the company suggested that Bitcoin could rise up to tenfold for institutional investors when competing with gold.
This latest forecast highlights that bouncing off gold as an ‘alternative’ currency will mark a huge increase for Bitcoin in the long run.
However, this will be a multi-year process, as a convergence in fluctuations between Bitcoin and gold is unlikely to happen quickly. According to JPM strategists, “This means that the theoretical Bitcoin price target of over $ 146,000 should be regarded as a long-term target and therefore an unsustainable price target for this year.”
The Wall Street bank, which has a lemon relationship with crypto, sees a long-term progress in Bitcoin prices, with an increase in corporate wallets and funds such as Grayscale’s Bitcoin Trust. The firm has set a new record for assets under management and currently has assets of only $ 23 billion.
JP Morgan strategists suggested that prices could continue to rise as FOMO rises, but added that it would be unsustainable at these levels:
“While we cannot exclude the possibility that the current speculative frenzy will push Bitcoin price further up to the consensus zone between $ 50,000-100,000, we believe that such price levels will be unsustainable.”
BTC price update
At the time of writing, Bitcoin is trading at $ 30,900, down 8% a day. After the sharp decline yesterday, prices fell below $ 28,000 for a short time and reached an intraday high of $ 32,800.
If a second daily red candle forms and the $ 31,000 support breaks down, the asset could drop further as the correction picks up. Previous bull market corrections were as large as 30%, resulting in a return to the previous all-time high of $ 20,000
The long-term outlook is still very optimistic for the crypto kingpin, according to JPM. The fixes will serve as buy and deposit zones for investors, retail and corporate.