According to JPMorgan Chase & Co., the popular cryptocurrency – Bitcoin has the potential of surpassing the $100,000 barrier and going on to a high of $146,000 in the long term.
Bitcoin has been rising rapidly in the previous few months jumping to a high of $34,000 on Sunday. However, the cryptocurrency crashed down to $29,000 on Monday reminding everyone of the volatility of the cryptocurrency. The volatility is the reason that most investors are scared to invest in the currency and choose stable alternatives like gold.
Gold, however, has been losing the race against Bitcoin in terms of investment as the returns on Bitcoin have quadrupled in the recent few weeks but there is still a lot of investment required to completely replace gold. Strategists like Nikolas Panigirtzoglou write, “Bitcoin’s market capitalization of around $575 billion would have to rise by 4.6 times — for a theoretical price of $146,000 — to match the total private sector investment in gold via exchange-traded funds or bars and coins.”
The strategists believe that the goal of $146,000 cannot be achieved this year however and can only be treated as a long-term goal. They also believe that the currency will reach around $50,000 – $100,000 during this year but that will be unsustainable. OS Limited’s CEO, however, believes that the volatility of Bitcoin will subsid overtime.
Image Source: Crypto Economy