JPMorgan, an investment bank in the United States, has set a long-term target price for Bitcoin at $146,000 (about 160 million won), Bloomberg News reported. The goal is to predict that Bitcoin will become an alternative asset to gold.
JPMorgan investment strategist Nicholas Panigirchoglu and others said in an investor memo on the 5th that in order to be similar to the size of gold investment, the market capitalization of Bitcoin, which is currently about $575 billion, must increase 4.6 times.In this case, the theoretical price is 146,000. Insisted on dollars.
JPMorgan analyzed that in order for Bitcoin to acquire this position, it must be chosen by institutional investors, and in order to do so, price volatility must be lower than now. In addition, he said, “I think the convergence of volatility between Bitcoin and Gold is a process that will take place over many years.”
Bitcoin rose 300% in 2020 and nearly 160% in the last three months, and during the first three days of the new year, the price soared to a record high of $34,420, showing strong volatility.
The cryptocurrency community predicts that such an uptrend will continue, but JPMorgan diagnosed that the current market is showing signs of’speculative madness’. They analyzed that in the short term, in the range of 50,000 to 100,000, the price of bitcoin will not be able to sustain the same big rise as before.
Meanwhile, Paul Tudor Jones, founder of Tudor Investments, renowned billionaire hedge fund manager, said, “There is a possibility that the price of bitcoin will rise to between $50,000 and $100,000 in the short term due to the current speculative craze, but the price line can be maintained. There seems to be no.”
Translation: Kim Dong-hwan, Park Geun-mo/Coindesk Korea
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