JPMorgan, the largest bank in the United States, predicts that Bitcoin, the most valuable cryptocurrency by market capitalization, will reach $150,000 in the long run.
This is a small increase above the $146,000 goal set last year.
In order for Bitcoin to attain the aforementioned goal. That’s, the dominant cryptocurrency would have to match the private sector’s $2.7 trillion investment in gold.
On November 10, Bitcoin’s market capitalization reached $1.3 trillion.
At the same time, the bank claims that the flagship cryptocurrency’s fair value is now around $38,000. Of course, which is roughly 13% lower than where it is currently trading on major spot exchanges.
JPMorgan’s conclusion is based on the fact that Bitcoin’s volatility is four times greater than gold’s. To become more valuable, the crypto monarch would have to become significantly less volatile.
JPMorgan sees another bear market as the largest impediment to Bitcoin adoption:
“The biggest challenge for Bitcoin going forward is its volatility and the boom”
“and bust cycles that hinder further institutional adoption.”
On Jan. 24, Bitcoin plummeted to a multi-month low of $32,950 before staging a stunning rebound. Bitcoin reached a high of $45,501 on the Bitstamp platform on February 8, but the climb halted soon after.
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