If bitcoin starts to more closely resemble the price performance as well as investment structure of gold, its price could surge to $45,000, according to a note from JPMorgan analysts.
However, the multinational investment bank believes that there is a big problem.
- Bitcoin’s performance to date has been rather impressive, as the asset entered 2023 at just under $17,000 after the 2022 turmoil. However, it surpassed that level in the first few weeks of the new year and surged to over $30,000 in the following months.
- Despite its subsequent rebound to its current level of around $27,000, BTC is still trading 60% higher now than it was at the start of 2023.
- JPMorgan Analysts Believes The cryptocurrency could go up another 75% soon. To do this, though, bitcoins must be accepted as an investment tool similar to gold, which many Maxis have argued for in the past several years.
“Investors currently hold gold for investment purposes outside central banks to the tune of about $3 trillion, which, if parallel to bitcoin, offers a price of $45,000. This projection is based on the assumption that the value of bitcoin will match the value of gold in the portfolios of private investors, from Where is risk capital or volume, ”- reads the note.
- The precious metal has also been on the rise since the start of the year, albeit in a more modest fashion. It entered 2023 at around $1,830 an ounce and jumped above $2,000 in early May. However, it has fallen to $1,950 an ounce since then, which means up nearly 6.2% since the beginning of the year.
- JPM strategists also outlined the next halving for 2024, which could be another factor driving the Bitcoin price rally.
Historically, the cost of producing bitcoin has served as an effective floor. Previous halving events in 2016 and 2020 caused bitcoin prices to gain momentum after the halving event. “
- A popular AI chatbot – ChatGPT – also gave us its thoughts on the fourth half recently, which is scheduled for 2024.
Binance Free $100 (Exclusive): Use this link to sign up and get $100 free and 10% off Binance Futures first month (conditions).
PrimeXBT Special Offer: Use this link to register and enter code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.