“BTC represents bullish behavior; will break $146,000 benchmark by 2021,” says JP Morgan.
- Predictions over cryptocurrencies, especially BTC, have been increasingly pouring due to Bitcoin’s price reaching an all-time high
- JPMorgan Chase’s completely changed attitude towards Bitcoin: made a prediction target of Bitcoin price of above $146,000
- Analysts report that the possible non-fulfilment of the predicted target can occur due to Bitcoin’s price volatility
- The reason behind the change in opinion regarding Bitcoin is the upward transcending trajectory of BTC
Bitcoin’s price values are setting new records every day. Along with this, prominent personalities from each industry are taking the bullish route towards Bitcoin. This setup has resulted in raining predictions over Bitcoin and other cryptocurrencies. Bitcoin’s bullish nature has convinced some really strong minds to modify their opinions regarding the ecosystem of digital currencies.
Winning at the aforementioned line of strong minds is the investment banking giant: JPMorgan Chase. The institution recently made a prediction target of the bitcoin price of above $146,000. The assumption behind the whole prediction remains that cryptocurrencies will become extremely popular in coming years, while Bitcoin becomes a convenient alternative for gold.
Bitcoin Predicted to Hit $146,000+
Though the mentioned prediction represents a vital transition, this is not the first time that JPMorgan Chase has predicted a price target for Bitcoin’s price. The multinational investment bank in the U.S. claimed that the price of bitcoin can soar to $650,000 in December 2020. Meanwhile, in November 2020, JPMorgan predicted that the turn of institutional investors towards Bitcoin can easily result in a surge for bitcoin by 10x.
Reacting to the prediction, analysts suggest that Bitcoin’s price volatility can prove to be a possible drawback for the reactive target. In order to enable more institutions to make large allocations, the price volatility needs to drop. JPMorgan commented on how the $146,000-plus target is intended to be a long-term objective.
The reason behind this remains that the conjunction of bitcoin and gold volatilities persist as a multi-year process. He also sees signs of “speculative mania,” while the crypto traders are wishing for the price rally to carry on.
The significant shift in JPMorgan’s opinion
The U.S. financial institution’s initial attitude towards the cryptocurrencies was not this bullish. Instead it was totally against the concept of Bitcoin and digital currencies. However, the inherent bullish nature of Bitcoin has convinced the giant firm for its support along with the precision of its banking facilitates prominent crypto changes like Coinbase and Gemini.
New units for digital currencies and blockchain have been launched as well. The transition is not specific to JPMorgan but it stands true to the entire market’s eventual favoring of Bitcoin. Jay Clayton, the Security and Exchange Commission (SEC) Chair, falls in the same category.
His earlier statement suggested that the trade of bitcoin was dependent on unregulated markets and therefore, there existed an uncertainty about possible manipulation of Bitcoin’s prices. As of now, he has acknowledged the bull run of Bitcoin recently.
The major reason behind this historic change in opinions is obviously the upward trajectory that Bitcoin is witnessing. The keen interest of investors is also escalating the hype and the worth associated with it. Nick Maggiulli, the author of the financial blog “Of Dollars and Data”, explained in detail how the non- Bitcoin traders who were initially against Bitcoin are now ready to invest in it even at $10,000. Thus, every time the price of Bitcoin increases, there will be an automated increase in this minimum price margin for investment.
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