- JPMorgan predicts that Bitcoin price could soar to $100,000 per unit.
- Bitcoin has the potential to reach the value of gold.
Of late, the BTC price has shown a tremendous rally since setting a new all-time high (ATH) of $34,684.90. Nonetheless, it plunged as much as 17% in price afterward. At the time of writing, BTC is trading at $31,101.70.
Additionally, JPMorgan expresses that Bitcoin’s 300% surge in 2020 could repeat this year. However, such a move higher would be unsustainable.
JPMorgan notes that:
We cannot exclude the possibility that the current speculative mania will propagate further, pushing the bitcoin price up towards the consensus region of between $50k – $100k…
BTC and Gold
JPMorgan foresees bitcoin competing against gold as an alternative currency. More so, millennial investors prefer digital gold over traditional gold and driving demand for the cryptocurrency.
The investment bank reckons that:
With a market value of $575 billion, bitcoin would have to surge to $146,000 to match the total private-sector investment in gold via exchange-traded funds or bars and coins.
However, it will not happen overnight for Bitcoin to become as valuable as gold. It is based on institutions becoming comfortable with the volatility associated with the crypto asset. A less volatile Bitcoin would likely lead to increased adoption among institutions. “A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is in our mind a multi-year process,” JPMorgan particularly added.