Bitcoin could see a positive boost as institutional investors currently hold around $3 trillion worth of gold, indicating potential opportunities for the cryptocurrency.
According to JPMorgan analysts, if Bitcoin starts to resemble the price performance and investment structure of gold, it has the potential to reach a significant price of $45,000.
JPMorgan analysts have noted that Bitcoin’s performance this year has been impressive, with a significant increase from under $17,000 to over $30,000. Although it has retraced to around $27,000, it is still trading 60% higher than at the beginning of 2023.
The analysts believe that Bitcoin could potentially rise by another 75% in the near future, but for this to happen, it needs to be widely accepted as a comparable investment to gold, an argument made by Bitcoin proponents over the past few years.
According to JPMorgan, if investors hold Bitcoin for investment purposes similar to how they hold gold outside of central banks, the cryptocurrency could potentially reach a price of $45,000. This projection is based on the assumption that Bitcoin’s value will align with gold in terms of risk capital or volume within private investors’ portfolios.
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Gold has experienced a gradual increase in value since the beginning of the year, starting at around $1,830 per ounce and briefly surpassing $2,000 in May. However, it has since decreased to $1,950 per ounce, resulting in a year-to-date increase of approximately 6.2%. JPMorgan’s strategists also highlighted the upcoming 2024 halving event, which could potentially contribute to a surge in Bitcoin’s price.
In the past, Bitcoin’s production cost has served as a reliable lower limit for its price. Previous halving events in 2016 and 2020 led to an increase in Bitcoin’s price, which gained further momentum after the halving occurred.
The AI chatbot, ChatGPT, shared its insights on the upcoming fourth halving event set to happen in 2024.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
