JPMorgan Predicts Bitcoin Price Could Rise Over $146K in Long Term

Bitcoin is increasingly competing with gold as an investment asset and has scope for substantial gains over coming years, according to JPMorgan strategists.

AccessTimeIconJan 5, 2021 at 9:04 a.m. UTC
Updated Sep 14, 2021 at 10:51 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Investment banking giant JPMorgan has called a long-term bitcoin price target of over $146,000 based on the assumption that the cryptocurrency will grow in popularity as an alternative to gold, Bloomberg reports.

"A crowding out of gold as an 'alternative' currency implies big upside for bitcoin over the long term," strategists led by Nikolaos Panigirtzoglou wrote in a note on Monday. "Bitcoin's [current] market capitalization of around $575 billion would have to rise by 4.6 times – for a theoretical bitcoin price of $146,000 – to match the total private sector investment in gold via exchange-traded funds or bars and coins."

However, analysts argued that bitcoin's price volatility needs to drop for institutions to make large allocations. The convergence of bitcoin and gold volatilities is a "multi-year process" and suggests that the $146,000-plus target is a long-term objective, JPMorgan noted.

Bitcoin rallied by 300% to $29,000 in 2020 and extended gains to a new record price of $34,420 in the first three days of the new year. The cryptocurrency has gained over 160% in the last three months alone, helped along by increased institutional participation.

While the crypto community expects the rally to continue, JPMorgan sees signs of "speculative mania" and believes further big gains towards the region of $50,000-$100,000 may be unsustainable in the near term.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



Read more about