According to a recent note by JPMorgan’s analysts, Bitcoin’s price could skyrocket to $45,000 if the leading cryptocurrency starts to resemble the price performance and investment structure of gold. Bitcoin’s YTD performance has been remarkable, with the asset starting 2023 under $17,000 after a turbulent 2022. However, it broke above that level in the first few weeks of the new year and soared to over $30,000 in the following months. Despite its subsequent retracement to its current level of around $27,000, BTC still trades 60% higher now than it did at the start of 2023.
JPMorgan’s analysts believe that the cryptocurrency could go up by another 75% soon. However, there is a big catch – Bitcoin needs to be accepted as a similar investment tool as gold, which many maxis have argued for in the past several years. “Investors are currently holding gold for investment purposes outside of central banks to the tune of around $3 trillion, which, if paralleled with Bitcoin, presents a $45,000 price. This projection is based on the assumption that Bitcoin’s value will match that of gold in private investors’ portfolios, in terms of risk capital or volume,” reads the note.
The precious metal has also been on the rise since the start of the year, albeit in a more modest fashion. It entered 2023 at around $1,830/oz and jumped above $2,000 in early May. However, it has dropped to $1,950/oz since then, meaning it’s around 6.2% up YTD.
Upcoming 2024 Bitcoin Halving
JPM’s strategists also outlined the upcoming 2024 halving, which could be another factor that propels a price surge for BTC. “Historically, Bitcoin’s production cost has acted as an effective minimum limit. Past halving events in 2016 and 2020 triggered an uptick in bitcoin prices that gathered momentum post the halving event.” The popular AI chatbot – ChatGPT – also gave us its thoughts on the fourth halving recently, scheduled to take place in 2024.
JPMorgan’s analysts believe that Bitcoin’s price could skyrocket to $45,000 if it starts resembling more the price performance and investment structure of gold. However, for that to happen, Bitcoin needs to be accepted as a similar investment tool as gold, which many maxis have argued for in the past several years. Additionally, the upcoming 2024 halving could be another factor that propels a price surge for BTC.