JPMorgan Predicts Bitcoin Can Hit $150,000
Bitcoin, the largest cryptocurrency by market cap, is forecast by US banking giant JPMorgan to hit $150,000 over the long term.
This is slightly above last year’s target of $146,000.
For Bitcoin to achieve the above goal, Bitcoin investments must match private sector investments in gold, estimated at $2.7 trillion.
Bitcoin’s market cap peaked at $1.3 trillion on November 10 last year.
Bitcoin is currently overvalued
At the same time, the bank claims that Bitcoin’s fair value is currently around $38,000, about 13% below the price currently trading in the market.
The fair value of Bitcoin is around $38,000 according to JPMorgan.
JPMorgan’s assessment is based on the fact that Bitcoin’s volatility is four times higher than that of gold. The King of Crypto would need to become significantly less volatile to become more valuable.
Another bear market ranks as the biggest obstacle to Bitcoin adoption, according to JPMorgan:
The biggest challenge for Bitcoin going forward is its volatility and boom-and-bust cycles hampering further institutional adoption.
Bitcoin hit a multi-month low of $32,950 on Jan. 24 before staging an impressive comeback. On Feb. 8, Bitcoin peaked at $45,500 on major exchanges, but the rally stalled shortly thereafter.
Bitcoin reached its current high of $69,044 in early November before staging a steep correction largely on concerns over the Fed’s likely rate hikes this year.
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