As the price of Bitcoin continues to rise, a lot of speculations from both analysts and strategists about the price of the coin continues to increase too. The price increase has also led to some comparisons between Bitcoin and Gold. One of such predictors is a group of strategists from JPMorgan Chase & Co.
The strategists, headed by Nikolaos Panigirtzoglou, mentioned that Bitcoin might reach $146,000 in the long term. However, for bitcoin to attain that price and equal with Gold, the cryptocurrency market cap would have to increase by 4.6 times [With Bitcoin’s market cap in terms of total private sector investment at over $590 billion as at the time of writing].
However, this condition depends on whether Bitcoin and Gold’s volatility intersects, which is an improbable occurrence. It is common knowledge that Bitcoin is a very volatile asset, a downside of the currency that prevents some investors from adding it to their portfolio, but Gold, which can be volatile in the short term, is usually stable over a long period.
Thus since Bitcoin’s volatility equaling that of Gold seems very unlikely to occur, the JPMorgan strategists termed Bitcoin at $146,000 as a “multiyear process” or “long-term target.”
Another institution that has also predicted Bitcoin price and compared it to Gold is Citibank, a US-based financial institution. A high ranking analyst from the bank analyzed that Bitcoin could reach $318,000 by December 2021.
While Bitcoin’s volatility is preventing some investors from making it an institutional investment, others like Paul Tudor Jones, Scott Minerd, Stan Druckenmiller, and even software company MicroStrategy are purchasing the currency or showing interest.
JPMorgan also foresees progress for Bitcoin, concerning the price condition of the cryptocurrency, the strategies stated
The valuation and position backdrop has become a lot more challenging for Bitcoin at the beginning of the New Year. While we cannot exclude the possibility that the current speculative mania will propagate further pushing the Bitcoin price up toward the consensus region of between US$50,000-US$100,000, we believe that such price levels would prove unsustainable.”
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