As per Bloomberg, investment banking firm, JP Morgan, believes that Bitcoin (BTC) has the potential to reach its lofty long-term price target of $146,000 per BTC, assuming that it sustains its current trajectory of being a viable alternative to gold.
Nikolaos Panigirtzoglou, a strategist of the bank, notes that crowding out gold as the more enticing alternative currency could bring tremendous upside for the surging crypto. He adds that Bitcoin’s current market capitalization of over $574 billion needs to rise four-fold to match the total gold private sector investment through ETF coins and bars – falling at a theoretical price of $146,000 per token.
The strategist also says that such a prediction heavily depends on the crypto’s ability to control its volatile nature to match that of gold. Although it may take considerable time, Panigirtzoglou clarifies that it is possible – not this year, but sometime in the future, and thus, it should be a long-term target for BTC.
Even though BTC’s market price is still surging as of press time, the crypto is still considered to be volatile. Over the past few days, BTC had its share of significant ups-and-downs, notably nose diving to $27,000 each before immediately popping back up to the $30,000 mark. While stating that investing in the crypto in the medium-term remains risky and challenging, JP Morgan firmly believes that BTC is capable of bigger things.