Here’s how bitcoin may soon cost $ 146,000 according to JPMorgan


Bitcoin’s almost nonstop ascent to new records has attracted the attention of Wall Street, like some other securities in recent memory.

The world’s No. 1 digital asset was trading nearly $ 32,000 in recent action Tuesday, in the final investigation, but the team at JPMorgan Chaser JPM,
+ 0.74%,
It seems that the blockchain-backed cryptocurrency could be valued at $ 146,000, which is not in the future if it can continue to drive demand from gold buyers, as bank researchers believe it already Happening.

Analysts point to outflows from gold-paged exchange-traded funds or ETFs, and for example, flows into digital-currency focused trusts sponsored by Grayscale, using bitcoin as part of the evidence as a form of security like gold. Occurs in Which will help carry its price further in the stratosphere.

Bitcoin’s competition with Gold has already started in our minds due to over $ 3 [billion] Flows in the Grayscale Bitcoin Trust and a boycott of more than $ 7 billion from Gold ETFs since mid-October “(see attached chart):

Via JP Morgan

JP Morgan states that by one measure, bitcoin currently consumes 3.4 times more risk capital than gold and, if grayscale compares bitcoin trust vs. GBTC
+ 8.27%
SPDR Gold Share GLD,
+ 0.27%,
The largest gold ETF by assets.

Bitcoin BTCUSD,
+ 7.59%
Currently its current market capitalization will increase to 4.6 times its capitalization around $ 575 billion – multiplied by the outstanding coins per unit price in circulation – the bitcoin price of $ 146,000 “The total private sector in gold through ETFs or bars To match the investment of “. Coins, ”includes JPMorgan’s strategy team, which includes Nicholas Panigiratzoglu, Mika Inkinen and Nishant Poddar.

The researchers also said that they expect large-scale interest in bitcoin from small investors.

Read: Opinion: Bitcoin supply is headed for shortages – and this will push prices forward

“There is little doubt that this competition with gold as an ‘alternative’ currency will continue in the coming years, becoming an important component of the investors’ universe over Millennial time and ‘digital gold’ over traditional gold” Will be given its priority for, ”the research team wrote in the research recorded on Monday.

A major obstacle to the rise in bitcoin prices and likely to make its price fragile is its volatility.

“But this is inversely based on the equation of the market cap of gold bitcoins for long-term investment, conditional on the volatility of bitcoins that convert to gold in the long term,” the researchers wrote.

Investors have been drawn to the narrative that bitcoin could serve as a repository of money over the past year in the central bank’s money printing to bolster economic recovery from the coronovirus epidemic.

PayPal PYPL,
+ 0.69%
Recently allowed users on its platform to buy bitcoins, as well as other sister cryptos such as Ethereum’s ether coins ETHUSD,
+ 8.34%,
Bitcoin cash BCHUSD,
+ 3.98%
And Litcoin LTCUSD,
+ 3.89%.
Square’s SQ,
+ 2.61%
The popular cash app also allows users to buy and sell bitcoins.

Bitcoin enjoyed a notable runup in 2020 compared to other assets. Bitcoins have risen by 12% so far in 2021, compared to 3% for the gold price GC00,
+ 0.36%

Gold,
-1.24%,
The most active gold futures contract for January is based on. Meanwhile, the Dow Jones Industrial Average DJIA,
+ 0.50%,
S&P 500 Index SPX,
+ 0.56%
And the Nasdaq Composite Comp,
+ 0.68%
All are low in this year.

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