Current Bitcoin ‘Mania’ ‘Unsustainable’, Long-Term Target – Over USD 146K – JPMorgan

Bitcoin Bitpay Forecast JPMorgan Market

Author

Linas Kmieliauskas

Author

Linas Kmieliauskas

Author Profile

Share

Copied

Last updated:

June 26, 2023 06:54 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

The valuation and position backdrop has become a lot more challenging for the most popular cryptocurrency, bitcoin (BTC), on the first days of 2021, but the above-USD 146,000 theoretical price target should be considered as a long-term target, according to strategists at JPMorgan Chase & Co.

However, they do not exclude that the current “speculative mania” will propagate further pushing BTC toward the “consensus region of between USD 50,000 – USD 100,000,” which would be unsustainable, Bloomberg reported.

Meanwhile, a crowding out of gold as an ‘alternative’ currency implies a big upside for bitcoin over the long term: “A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process.”

Aso, Sonny Singh, Chief Commercial Officer (CCO) of major crypto payment processor BitPay, estimates that BTC goes up to USD 40,000 – USD 45,000 “the next month or so” when the market might start feeling a stronger sell pressure.

“I think when it gets that high, you will start seeing something else come into play,” Singh told in an interview with Bloomberg, predicting that BTC will become a trillion-dollar currency this year. The current market capitalization of almost USD 580bn should increase by around 70% to reach this milestone.

The CCO also didn’t rule out that the US government might start buying BTC, but before that, they might introduce more aggressive regulation.

As reported, at the beginning of 2020, Singh estimated that BTC will rise above USD 20,000 that year. The price reached that level in December.

At the time of writing (05:12 UTC), BTC trades at USD 31,186 and is down by 6% in a day, trimming its weekly gains to less than 19%. The price rallied by 62% in a month and 314% in a year. It surpassed USD 34,500 this past Sunday.
___
Learn more:
Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, Chainlink Price Predictions for 2021
Crypto in 2021: Bitcoin To Ride The Same Wave Of Macroeconomic Problems
Bitcoin Wheel Cannot Be Stopped