Bitcoin has the potential to reach $146,000 in the long term as it competes with gold as an asset class, according to JPMorgan Chase & Co.
The world’s No. 1 digital asset was recently trading at around $32,000 in Tuesday action, at last check, but the team at JPMorgan Chase JPM, +3.52%, make the case that the blockchain-backed cryptocurrency could be valued at $146,000 in the not-so-distant future , if it can continue to draw demand away from gold buyers, as the researchers at the bank think is already happening.
Not early enough, Bitcoin was considered as the worst investment option. Many people lost their assets to this cryptocurrency.
The readers with the financial background would understand that any stock listed has a certain trend. It would either be Bullish or Bearish.
What is a Bullish trend in stock market ?
When a stock trends towards profits, it is technically called bullish run.
What is a Bearish trend in stock market ?
When a stock trends towards losses, it is technically termed bearish run.
Current Market Trend of Bitcoin
“A crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” strategists led by Nikolaos Panigirtzoglou wrote in a note on Monday. “Bitcoin’s [current] market capitalization of around $575 billion would have to rise by 4.6 times – for a theoretical bitcoin price of $146,000 – to match the total private sector investment in gold via exchange-traded funds or bars and coins.”
JPMorgan says that by one measure, bitcoin currently consumes 3.4 times more risk capital than gold and over 5 times more, if comparing the Grayscale Bitcoin Trust versus GBTC, 8.79% the SPDR Gold Shares GLD, -0.17%, the largest gold ETF by asset.
Bitcoin BTCUSD, 9.13% would currently have to rise by 4.6 time from its current market capitalization of around $575 billion — outstanding coins in circulation multiplied by price per unit — to imply a bitcoin price of $146,000 “to match the total private sector investment in gold via ETFs or bars and coins,” wrote JPMorgan’s strategy team, including, Nikolaos Panigirtzoglou, Mika Inkinen and Nishant Poddar.