JPMorgan Doubles Down On Its Massive Bitcoin Price Prediction—But Adds A Serious Warning

Bitcoin and cryptocurrencies have made their way across Wall Street this year, and many of the biggest banks are now launching cryptocurrency services.

The price of bitcoin has rocketed from $15,000 for bitcoin at the time of last year’s worth to more than $60,000 at present. This has caused “supple shocks” that analysts believe has increased in the past month.

Today, the banking significant JPMorgan JPM -1.3% has reaffirmed its forecast that bitcoin will more than double to about $146,000 shortly. However, JPMorgan has warned that bitcoin’s extreme volatility could push its value down sharply, giving bitcoin a price of just $35,000.

The bitcoin price has skyrocketed this year. However, some people believe the bitcoin bull market isn’t finished yet.

“This vital 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,” JPMorgan analysts headed by Nikolaos Panigirtzoglou wrote in a letter to clients that was seen in Business Insider. “Digital assets are on a multiyear structural ascent, but the current entry point looks unattractive.”

Many crypto and bitcoin market experts have predicted that the price of bitcoin will reach $100,000 by 2020’s end partly due to concerns about inflation that are pushing investors into the so-called safe-haven investments.

The fear that inflation, which is currently at a 13-year-high across the U.S.–could be more sustained than temporary has caused being prompted by the Federal Reserve to begin scaling down its massive, quantitative easing program triggered by pandemics.

“Digital assets have emerged as a clear victor post the pandemic, with retail investors joining institutional stake holders such as family offices, hedge funds, and real money asset managers including insurance companies in propagating the asset class,” JPMorgan analysts wrote.

The price of bitcoin has hiked by nearly 300% in the past 12 months, which has helped the market for cryptocurrency to increase by around $2 trillion in total value.

“The re-emergence of inflation concerns among investors during September or October 2021 pop-up to have resume curiosity in the use of bitcoin as an pretensse hedge,” JPMorgan strategists wrote. “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.”

Researchers at the bank believe that should bitcoin’s volatility continue to decrease, a cost of $73,000 by 2022 seems feasible. Still, its wild fluctuations could mean the possibility of a rise that is more than double the current $61,000, or even the case of a decrease to below $30,000. This is also an option.

However, bitcoin’s potential as a hedge against inflation for gold in the slightest degree could include the creation of the possibility of a “big upside for bitcoin.”

“Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” Panigirtzoglou wrote and reiterated his Bitcoin price forecast of $146,000 for a bitcoin.

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Robert Scoble
Robert is the assistant managing editor for HC News, overseeing coverage of markets, companies, strategy and business leaders. Originally from Boston, Scoble began his journalism career in 1997 & now resides outside New York.

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