JPMorgan Reaffirms Huge Bitcoin Price Prediction
Cryptocurrency Price Prediction: Bitcoin Could Reach $100,000 by the End of 2021-- But It Lacks the 'Intensity' of Ethereum.
Bitcoin and other cryptocurrencies have taken over Wall Street this year. Several of the world's largest financial institutions are launching cryptocurrency services.
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It is estimated that the bitcoin price has increased from roughly $15,000 per bitcoin at this time last year to over $60,000 per bitcoin today, resulting in "supple shocks" that have become greater over the previous month, according to experts.
Currently, the banking behemoth JPMorgan JPM -0.1 percent has reiterated its forecast that bitcoin's price would more than double to roughly $146,000 in the long run. Still, it has also cautioned that bitcoin's extraordinary volatility might cause its price to plummet, giving bitcoin a reasonable value of just $35,000.
JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note to clients seen by Business Insider…
"This challenges the idea that a price target of $100,000 or above, which appears to be the current consensus for 2022, is a sustainable bitcoin target in the absence of a significant decline in bitcoin volatility. Digital assets are on a multiyear structural ascent, but the current entry point looks unattractive."
Many bitcoin and cryptocurrency market watchers anticipate that the bitcoin price will hit $100,000 by the end of 2021, as a consequence of inflation fears pushing investors towards so-called haven assets such as gold.
As a result of growing concerns that inflation in the United States, which has hit a 13-year high, maybe more permanent than transitory, the Federal Reserve has begun to scale down its enormous quantitative easing program, which was spurred by the Covid-19 outbreak.
Because of the pandemic, according to JPMorgan analysts, "digital assets have emerged as the obvious winner," with regular investors joining institutions such as family offices, hedge funds, and real money asset managers such as insurance companies in promoting the asset class to a broader audience.
With a gain of more than 300 percent in the price of bitcoin over the previous year, the whole cryptocurrency industry has seen an increase in its worth of about $2 trillion.
JPMorgan strategists wrote…
"The re-emergence of inflation concerns among investors during September/October 2021 appears to have renewed interest in the usage of bitcoin as an inflation hedge. Bitcoin's allure as an inflation hedge has perhaps been strengthened by the failure of gold to respond in recent weeks to heightened concerns over inflation."
Why this investor believes bitcoin could hit $100,000