If bitcoin starts to look more like the price performance, as well as the investment structure of gold, its price could skyrocket to $45,000, according to a note from JPMorgan analysts.
However, the multinational investment bank believes there is a big catch.
Bitcoin’s YTD performance has been quite impressive, as the asset entered 2023 below $17,000 after a turbulent 2022. However, it broke above that level in the first few weeks of the new year and soared to over $30,000 in the following months. Despite its subsequent pullback to its current level of around $27,000, BTC is still trading 60% higher now than it was in early 2023. JPMorgan analysts believe the cryptocurrency could be up another 75% soon. However, to do so, Bitcoin must be accepted as an investment tool similar to gold, for which many maxis have advocated in recent years.
“Investors currently hold gold for investment purposes outside of central banks to the tune of around $3 trillion, which, when compared to Bitcoin, is priced at $45,000. This projection is based on the assumption that the value of Bitcoin will match that of gold in the portfolios of private investors, in terms of venture capital or volume,” the note read.
The precious metal has also been rising since the beginning of the year, albeit more modestly. It entered 2023 at around $1,830/oz and topped $2,000 in early May. However, it’s down to $1,950 an ounce since then, meaning it’s up 6.2% year-to-date. JPM strategists also outlined the upcoming 2024 halving, which could be another factor driving a rise in BTC price.
“Historically, Bitcoin’s cost of production has acted as an effective floor. Previous halving events in 2016 and 2020 triggered a spike in bitcoin prices that gained momentum after the halving event.”
The popular AI chatbot ChatGPT also gave us feedback on the fourth halving recently, scheduled for 2024.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).
PrimeXBT Special Offer: Use this link to sign up and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposits.
This post Here’s What Needs to Happen for Bitcoin to Hit $45,000 This Year, According to JPMorgan
was published first on https://cryptopotato.com/this-is-what-needs-to-happen-for-bitcoin-to-reach-45k-this-year-according-to-jpmorgan/