Although the price tag is extremely optimistic, strategists don't expect the milestone to be reached in 2021.
JPMorgan’s CEO might not be a big fan of Bitcoin, but it seems like the bank’s analysts firmly believe that there’s further room for price growth.
In a new note to investors, the investment bank’s strategists revealed that they believe BTC could be worth $146,000 in the long term.
However, JPMorgan stressed that — in its view at least —that the world’s biggest cryptocurrency is unlikely to hit that price point this year.
Justifying its argument, the institution pointed to how Bitcoin is beginning to establish itself as a compelling alternative to gold.
Bitcoin’s market cap currently stands at about $590 billion — and if the cryptocurrency has any hope of matching what the private sector invests in gold, this would need to be closer to $2.6 trillion.
Stressing that this isn’t going to happen quickly and is likely to take several years, the note added:
“A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term.”
Focusing on the short term, JPMorgan believes that there could be some big challenges ahead for BTC… but concedes that, in the erratic crypto markets, anything is possible:
“While we cannot exclude the possibility that the current speculative mania will propagate further pushing the Bitcoin price up toward the consensus region of between $50,000-$100,000, we believe that such price levels would prove unsustainable.”
JPMorgan CEO Jamie Dimon has been a vocal critic of Bitcoin — recently describing it as “not his cup of tea.” He also warned that the U.S. could move to regulate the cryptocurrency if its market cap gets too big.