According JP Morgan, the price of Bitcoin could hit $ 146,000. According to an analysis published by the bank, in 2021 Bitcoin will see its value increase in a range between $ 50,000 and $ 100,000. However, this growth will not be stable. In fact, JP Morgan states:
"While we cannot exclude the possibility that the current speculative mania will spread further, pushing the price of bitcoin towards the consensus region of $ 50k – $ 100k, we believe such price levels would prove unsustainable."
JP Morgan further adds that bitcoin adoption is likely to grow as younger generations prefer it to physical gold. But to meet the needs of private investors who now depend on gold ETFs, gold bars or currencies, their price should reach the $ 146,000.
This is a hypothetical calculation because, according to JP Morgan, there is a condition that must first come true: Bitcoin should also line up with gold in terms of volatility. This means that as long as the price continues to skyrocket and fall with the shocks we've seen over the last month, its mass adoption will remain distant.
Therefore, it is unrealistic to expect that allocations to bitcoin by institutional investors will match those of gold without a convergence in volatilities. A convergence in volatilities between bitcoin and gold is unlikely to occur rapidly and, in our mind, it is a multi-year process. "
JP Morgan: How will Bitcoin change over the years?
In short, for bitcoin to become the true alternative to gold and reach sky-high figures, it needs to reduce its volatility, and that it will take years.
"This implies that Bitcoin's theoretical target price above $ 146,000 should be seen as a long-term target and therefore an unsustainable price target for this year."
Bitcoin just hit its all-time price peak at $ 34,000 on Sunday, January 3, then underwent a pullback that took it to the $ 32,500 current.
This price increase has contributed to increased demand from institutional investors, which is also evidenced by the fact that Grayscale Bitcoin Trust has once again increased its funds in Bitcoin to $ 19 billion.
This combo, combined with the deflationary nature of Bitcoin and its limited supply, could lead to an increase in value, in line with JP Morgan's prediction.