- JPMorgan analysts have written a note to investors to suggest that a Bitcoin price of $146,000 is a “long-term target”
- The analysts say that a “convergence” with the gold market can take Bitcoin close to $150,000 per token
- However, this is a “multiyear process” and can’t be reached this year
JPMorgan strategists have been notable for their Bitcoin u-turn in 2020, and this positive outlook has continued into 2021 with another strategist proclaiming that Bitcoin could rise to $146,000 over time. Bloomberg reported yesterday on the bullish prediction by JPMorgan strategist Nikolaos Panigirtzoglou, who clarified that the prediction was based on a correlation to the gold market and would happen over years, not in 2021.
“Big Upside for Bitcoin”
Bitcoin has enjoyed a remarkable start to 2021, ripping to $34,800 last week having passed its prior all time high on December 16. Plenty of crypto crystal ball gazers have offered predictions on Bitcoin’s future price, and Panigirtzoglou agreed in his note that there is “big upside for Bitcoin over the long term.”
His own prediction is not plucked out of thin air – instead it is based on “a convergence in volatilities between Bitcoin and gold” which “implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target…”. Should it achieve this it will match the total private sector investment in gold, including ETFs (exchange-traded funds), bars, and coins.
$146,000 is “Long-Term Target”
However, the Panigirtzoglou cautions that this is a long-term target dependent upon further institutional adoption and is not something that will be hit in 2021, with the JPMorgan strategist adding that “this convergence is unlikely to happen quickly and is in our mind a multiyear process”, meaning that it is “an unsustainable price target for this year.”
The bullish prediction remains at odds with the presentment of JPMorgan CEO Jamie Dimon who has previously called Bitcoin a fraud and threatened to fire anyone that held it.