Bitcoin’s value could go beyond US$ 146,000 if it continues to go eye-to-eye with Gold, say analysts at JPMorgan. Also, suggest the current Bitcoin Bull-Run is more or less the same as that of 2017. But pointed out three potential risks that could change the overall structure of Bitcoin in 2021.
On Monday, JPMorgan had published a report regarding the legendary digital currency Bitcoin and its expected future. In the report, analysts had informed that they had evaluated Bitcoin and carried out Bitcoin’s fundamental analysis. JPMorgan’s analysts suggested that if Bitcoin continued to remain bullish then in the near future Bitcoin’s price range would be between US$50,000 to US$100,000. They stated that they cannot rule out the possibility of Bitcoin’s going near or above this price range.
Analysts suggested that currently Bitcoin had been going eye-to-eye with Gold and most of the time outperformed Gold quite easily. They also took notice of the fact that in the year 2020 about US$ 3 Billion investment had been brought into Bitcoin. While for Gold the figures remained lowest wherein it lost potential investment of US$ 7 Billion approximately since October.
It was pointed out in the report that in order for Bitcoin to overcome Gold completely, Bitcoin had to increase its market cap. The current Bitcoin’s cap, as suggested in JPMorgan’s report is US$ 575 Billion. However, this cap would need to be increased for say US$ 575 Billion x 4.6. This would then become equivalent to the investment in Gold by the private sector through ETF. This would simply mean that Gold would be annihilated by Bitcoin when its price would be US$ 146,000 hypothetically.
One of the contributors of the report, Nikolaos Panigirtzoglou, also shared his prediction regarding Bitcoin’s future outlook. He said three potential risks could negatively impact Bitcoin’s future in 2021. He pointed out that the first risk is relating to the legitimate expectancy of Bitcoiners that the coin’s value would range from US$50,000-100,000.
The second risk would be if the institutional sectors lose interest in Bitcoin, while the third risk highlighted was whether the current pool of retailers as well as merchants would be increased exponentially. He also questioned whether Bitcoin would be successful in convincing more retailers and merchants to accept it as payment.
He said that the future of Bitcoin rests on non-triggering of these risks. But if in case any one of these risks had triggered then the future course of Bitcoin will be undermined massively.
However, the report concluded on the note that Bitcoin had a collateral impact upon everyone in 2020, and JPMorgan was one of them. The analysts of JPMorgan said that their viewpoint regarding Bitcoin changed when it transformed into something which came head-to-head with Gold. But still, Bitcoin is far behind in terms of it being used as a payment currency. This is something where the developers of the coin would need to focus on, they said.