JP Morgan, the largest bank in the United States, has recently aired its prediction regarding the bullish prospect of Bitcoin (BTC), the largest cryptocurrency by market capitalization.
According to the popular bank, Bitcoin has the potential to hit $146,000, as the king of coins embarks on its meteoric upside trend.
$146,000 Is Possible If Bitcoin (BTC) Continues To Outshine Gold
As stated by JP Morgan strategist, Nikolaos Panigirtzoglou, such a huge price target is possible as long as Bitcoin (BTC) continues to outshine the precious metal Gold. However, he pointed out that this will happen in steps, rather than overnight:
“A convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.”
$50,000-$100,000 Would Be Unsustainable for Bitcoin (BTC) In 2021
There have been predictions regarding the possibility of Bitcoin (BTC) trading between $50,000 and $100,000 in 2021. Contrary to such price predictions, JPMorgan’s strategists warn that such a price range would be impossible to sustain this year.
Although the bank agrees that speculations could take Bitcoin to such an insane price range.
It can be recalled that the price of the leading cryptocurrency, Bitcoin (BTC), has been on a steady upside trend since the March 2020 historic price dump, following the outbreak of coronavirus pandemic.
On 3rd January 2021, Bitcoin surged to record a new all-time high of $34,800, before undergoing a slight pullback to the $28,000 price level. At press time, BTC is trading at $31,891.12, with a 2.31% price increase based on 24 hours estimation.
Based on Bitcoin’s stock-to-flow valuation model, which has clearly been accurate so far, BTC is poised to hit $100,000 by the end of 2021.
A Change in Stance Is a Reflection of Bitcoin’s Potential
It’s obvious that Bitcoin (BTC) has been proving critics wrong lately. JP Morgan is one of many Bitcoin critics that change their assessments on the future of the cryptocurrency.
In November 2020, when Bitcoin was trending closer to reaching all-time highs, JP Morgan’s strategists, Panigirtzoglou backtracked on his unfavorable prediction:
“Bitcoin’s continued rally is challenging our previous assessment that overbought positions by momentum traders such as CTAs could potentially trigger profit taking or mean reversion flows over the near term.”