JPMorgan’s analysts have made a case that bitcoin’s price could reach $146,000 as the cryptocurrency’s competition with gold heats up. Meanwhile, the firm’s global strategist sees the current bitcoin bull run as being similar to the bull run of 2017. He warns of three risks that could affect bitcoin’s outlook for 2021.
JPMorgan Sets Bitcoin’s Price Target at $146K
JPMorgan published a report Monday on bitcoin’s valuation and future outlook. “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,” the analysts wrote. “We believe that such price levels would prove unsustainable.”
They explained: “Bitcoin’s competition with gold has already started in our mind as evidenced by the more than $3bn of inflows into the Grayscale Bitcoin Trust and the more than $7bn of outflows from Gold ETFs since mid-October.” The report elaborates:
The market cap of bitcoin at $575bn currently would have to rise by x4.6 from here, implying a theoretical bitcoin price of $146k, to match the total private sector investment in gold via ETFs or bars and coins.
The analysts added: “A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is in our mind a multi-year process. This implies that the above $146k theoretical bitcoin price target should be considered as a long-term target.”
JPMorgan Strategist Says Current Bitcoin Bull Run Similar to 2017
JPMorgan’s senior global markets strategist Nikolaos Panigirtzoglou, one of the report authors, also shared his 2021 outlook for bitcoin on CNBC’s Squawk Alley last week.
“There are three risks in my mind,” he began. “The first one is the strong consensus that exists at the moment that the bitcoin price will reach in 2021
