JPMorgan predicts Bitcoin Will Top $146,000

JPMorgan’s CEO Jamie Dimon has traditionally been more supportive of blockchain technology than Bitcoin, which he once described as “a fraud.” But as the digital currency competes with gold as an alternative store of value in chaotic times, he forecasts a promising future for Bitcoin holders.

JPMorgan predicts Bitcoin Will Top $146,000

Bitcoin may skyrocket over the next year, but its market cap will remain way below that of gold, JPMorgan said. Currently nearing $600 billion, it is still far below gold’s $2.7 trillion.

For Bitcoin to rival gold’s market value, it should become stable enough to attract larger investments from big funds and other institutional investors. “This long term upside based on an equalization of the market cap of Bitcoin to that of gold for investment purposes,” JPMorgan’s analysts said, “is conditional on the volatility of Bitcoin converging to that of gold over the long term.”

Bubble or Steady Growth?

While Bitcoin saw a similar price surge in 2017, circumstances were very different then. When the bubble burst and the digital currency plummeted to about $3,000, following a $20,000 high, there were no large institutional investors involved. Bitcoin has gained much credibility over the last couple of years. According to JPMorgan, there’s “little doubt that the institutional flow impulse into Bitcoin is what distinguishes 2020 from 2017.”

JPMorgan’s strategists believe, however, that “the above $146k theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.”

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