An analysis by JPMorgan estimated that Bitcoin (BTC) will reach $45,000 due to the increase in the price of an ounce of gold, which is about to exceed $2,000 and both assets move their prices upwards when they move together.
JPMorgan considers that analysts and the financial market analyze BTC and gold with the same optics and agrees that both assets are below their expectations. For analysts, gold should exceed $2,000 and Bitcoin $40,000. The current price of an ounce of gold is $1,945, while the price of Bitcoin is around $26,712.
JPMorgan strategists Nikolaos Panigirtzoglou explained in a note:
“With the price of gold rising above $2,000, the value of gold held for investment purposes outside of central banks is currently valued at around [3 billones de dólares]. In turn, this implies a price of $45,000 for Bitcoin under the assumption that BTC equals gold on private investors on VC or adjusted terms. [por volumen]”.
For JPMorgan, gold and Bitcoin are seen as “assets of value”, despite their difference in origin and age of each asset. Analysts estimate that the price of Bitcoin will hit $40,000 during the halving in 2024.
JPMorgan estimates that investors are turning to Bitcoin in the face of uncertainty
BeInCrypto reported days ago when JPMorgan estimated that, with the threat of more crises, investors are moving their money into gold to protect themselves. Apparently, investors would be betting on a plan that is based on mixing long-term and stable investments such as gold, with growth stocks, mainly those that focus on the technological world.
However, other investors would be looking at Bitcoin and cryptos as an option. JPMorgan experts argue that the halving it will drive the production cost of BTC up to $40,000, forcing its price to rise.
It set a price cap of $45,000, which would indicate limited potential beyond the increase driven by doubling production costs. That is, the block reward would be halved, from 6.25 to 3,125 BTC.
JPMorgan estimates that the halving will boost the price of BTC “yes or yes”
For JPMorgan, this would mean a 25% return on BTC for the next 12 months: “Therefore, we expect Ethereum to underperform Bitcoin in the short term.”
Despite the proximity of the next halving, Bitcoin price forecasts remain pessimistic. Analyst Nicholas Merten, aka DataDash, the price of Bitcoin will drop as low as $12,000 in September.
The analyst maintained that while Bitcoin has historically been correlated with technology stocks, it is now beginning to lag behind. According to the analyst, shares of tech companies like Microsoft and Nvidia are rising, while Bitcoin is not doing as well.
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