JP Morgan, an American Multinational Bank, has predicted Bitcoin long-term price to reach $146, 000 in its new publication’s initiation.
Bitcoin.com announced the alternative investments from real estate to private equity and digital assets, quoting from JP Morgan’s inaugural issue of the new publication released last week.
If the volatility of Bitcoin recedes and it is the preferred choice of institutions rather than gold, the value of Bitcoin can reach the forecasted price, according to JP Morgan.
According to Nikolaos Panigirtzoglou, strategist at JP Morgan, there are several reasons for the doubling of Bitcoin price which includes digital assets being on a multi-year structural ascent, although entry locations for a 12-month investing period appear undesirable as Bitcoin returns to overbought condition.
The resurgence of inflation fears has piqued investors’ interest in adopting Bitcoin as an inflation hedge in September and October 2021. He believes that the inability of gold to respond successfully to inflation fears in recent weeks has bolstered the case for Bitcoin as an inflation hedge.
As more millennials invest in Bitcoin, Panigirtzoglou believes that it will continue to compete with gold. The substitution of Bitcoin for gold as an alternative currency would result in a significant and long-term boost for Bitcoin. He forecasted a short-term price objective of $73,000 for Bitcoin in the year 2022. Due to the current volatility, the fair price of Bitcoin is around $35,000.
A willing seller and buyer agree on a fair price, which is a broad measure of an asset’s worth. It differs from market value, which refers to the price of an asset on the open market. Panigirtzoglou cautioned, however, that due to Bitcoin’s great unpredictability, both a rise beyond $146,000 and a fall below $30,000 are probable.
For the time being, JPMorgan expects challenges for the largest cryptocurrency, with indications such as a growth in investment wallets storing tiny amounts of Bitcoin indicating prospective froth.