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Bitcoin is one of the most valuable assets and commodities in the world. Currently, its value keeps fluctuating between $62,000 and $63,000. Also, it recently went up to an all-time high of $69,000.
However, if you want to invest in Bitcoin, you have to know more than just the asset’s price. Therefore, you have to conduct a market analysis and research key trends. This way, you should predict whether the most popular cryptocurrency will increase or decrease in value.
Bitcoin Investments in a Nutshell
In several cases, people bought Bitcoin when its value was $1,000 and, today, they are Bitcoin millionaires.
On the other hand, some people put their entire life’s savings into Bitcoin. Then, they see it plummet by $5,000 or $10,000 in a matter of minutes. This is why people are wary of investing in Bitcoin or locking their funds in the cryptocurrency for a long time.
At the same time, the global investment bank JPMorgan has been very optimistic and vocal about the Bitcoin forecast. It stands firm on its prediction that the Bitcoin price will go up to reach nearly twice its current value, or $146,000 to be precise. Although this sounds too good to be true, JPMorgan is banking on it and seems pretty confident.
JPMorgan’s Report on the Bitcoin Price Prediction
Some financial experts are the doomsday prophets for Bitcoin. However, JPMorgan stands firm on its belief that Bitcoin’s value will soar in the long run. Also, it predicts that BTC’s price will reach up to $146,000 in a matter of a few years. In addition, the investment bank recently released a new report discussing the potential of alternative investments.
Digital assets were the main focus of this report which argued that Bitcoin could reach $146,000. Meanwhile, the crypto king would also compete with gold as an asset class. However, the market capitalization of Bitcoin stands at $575 billion. On the other hand, the private sector investment in gold is nearly five times higher. Therefore, the Bitcoin market volume will have to rise significantly before it can match that of gold. However, the financial experts at JPMorgan are adamant that this will happen.
Earlier this year, JPMorgan Chase & Co. also mentioned that the “crowding out” of gold could benefit Bitcoin. However, they also maintained that Bitcoin reaching $146,000 is a long-term target. Still, this statement came long before Bitcoin had even touched the $30,000 mark.
During this year alone, Bitcoin managed to sprint past the $60,000 mark. This event restored the confidence of JP Morgan’s financial experts.
In November 2021, Bitcoin’s value got very close to the $70,000 mark. Unfortunately, since then, the value has fallen by a few thousand dollars.
According to the investment bank’s analyst, Nikolaos Panigirtzoglou, Bitcoin’s price will cross the $100,000 mark within a few years. Still, he believes that experts should only hope for an all-time high of $73,000 for 2022.
According to Panigirtzoglou, digital assets are climbing in value on a multi-year projection. So, people can’t view it with an investment perspective of only 12 months.
Additionally, several factors influence the Bitcoin price oscillations. For instance, the recent inflation was highly influential. And, investors are also considering their Bitcoin investment as an inflation hedge.
Since gold has failed to respond to the investors’ concerns regarding inflation, Bitcoin became an appealing asset. The financial analyst predicts that Bitcoin will continue to compete with gold. Also, millennials like cryptocurrencies and are investing their savings and earnings into Bitcoin. After all, they are the investors of tomorrow.
Considering the size of the private investment that gold requires, the crowding out strategy will also strengthen Bitcoin’s value. However, the JPMorgan report stipulates that its volatility has to reduce for the Bitcoin price to climb up to six digits. This would entice investors to add Bitcoin to their investment portfolios and redirect funds from other ventures into it.
Contrary to gold, Bitcoin is four times more volatile. And, the volatility is dangerous for the Bitcoin value, which shouldn’t be greater than $35,000 at this moment. Lastly, Panigirtzoglou says that anything is possible, including the rise of the Bitcoin value above $146,000. However, he does not exclude well as a drop below $30,000.
Due to the pandemic and the ensuing economic uncertainty, people have increased in digital assets. This gives us confidence that Bitcoin will continue to climb in the following years. As a result, investors are actively looking to propagate this asset class and increase its significance.