JPMorgan – Bitcoin will Hit $130,000–$470,000 April 6, 2021 April 6, 2021 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsApril 6, 2021 by Kelly Cromley

JPMorgan – Bitcoin will Hit $130,000–$470,000

JPMorgan Chase anticipates Bitcoin (BTC) to hit $130,000, while Ark Invest expects the market valuation of Bitcoin to eclipse that of gold. The bullish macro forecast from both funds is based on the decreasing liquidity of Bitcoin, which has soared in fame as a safe haven asset.

The US dollar index is forecast to decline. The worries about inflation and surge in liquidity in the financial markets are paving way for reserve currencies such as the US dollar to lose value.

Ark Invest, for instance, expects Bitcoin to reach $500,000 in the years ahead on the basis of the fact that the fund anticipates it to eclipse gold by market cap.

Presently, the market cap of Bitcoin is about 10% of the yellow metal. In fact, the founders of Gemini cryptocurrency exchange, Winklevoss twins, possess more than a billion dollars’ worth cryptos such as Bitcoin, has given out a comparable view in the past.

In the latest popular write-up titled “The Case for $500K Bitcoin,” Tyler Winklevoss, co-founder of Gemini stated:

“Today, the market capitalization of above-ground gold is conservatively $9 trillion. If we are right about using a gold framework to value bitcoin, and bitcoin continues on this path, then the bull case scenario for bitcoin is that it is undervalued by a multiple of 45. Said differently, the price of bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per bitcoin.”

In the meantime, JP Morgan has issued a highly conservative price target of $130,000, which is more pragmatic as a near-term target for Bitcoin, as it would place Bitcoin’s worth at about $2.73 trillion.

Holger Zschaepitz, market analyst at Welt, has pointed out:

Nevertheless, Zschaepitz has pointed out that the long-term risk-adjusted price of Bitcoin could decline in the future as it is cumbersome task to predict the volatility trend over time. As per pseudonymous trader Bitcoin Jack, the Spent output profit ratio (SOPR) indicator signals the likelihood of profit booking in the near-term.

The SOPR indicator measures the quantity of profitable Bitcoin in the market and hence susceptible to a sell-off. The trader stated:

Another crypto trader Scott Melker stressed that Bitcoin has recorded impressive gains against the S&P 500 and the US stock market has indirectly contributed to boosting its worthiness as a store of value.

Furthermore, Melker wrote:

Until Bitcoin keeps eclipsing the US stock market, in terms of risk, it would be an attractive asset for institutions, high net-worth individuals and retail traders in the short- to medium-term.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.