Bitcoin briefly cracked $40,000 on Jan. 7, reaching a new all-time-high of $40,180.15 at 1:21 p.m. EST according to CoinGecko. It then plummeted nearly $3,000 before jumping back to its current $39,200.
JPMorgan analysts: Bitcoin will reach $146K, but not soon
The bank predicted that before heading beyond $146,000 Bitcoin would need to significantly decrease its volatility—a process it believes will take years
To do that, it will need to continue attracting large institutional investors. And to do that, Bitcoin would have to become far less volatile than it is now. That’s already happening, the JPMorgan note pointed out, with an analyst suggesting that there’s “little doubt that the institutional flow impulse into Bitcoin is what distinguishes 2020 from 2017.”
Falling liquidity threatens Bitcoin rally: JPMorgan’s Panigirtzoglou
Analysts at the world’s top bank suggested that low liquidity means that a relatively-small sellout could have major implications for Bitcoin’s price
“Market liquidity is currently much lower for Bitcoin than in gold or the S&P 500, which implies that even small flows can have a large price impact," JPMorgan’s Nikolaos Panigirtzoglou said today.
As Bitcoin breaks into trillion-dollar club, JPMorgan calls it an ‘economic sideshow’
The bank’s analysts believe that Bitcoin is becoming a more cyclical asset, turning the cryptocurrency into the ‘poorest hedge’ against a stock market downturn
Despite that, JPMorgan’s “Digital transformation and the rise of fintech: Blockchain, Bitcoin and digital finance 2021” concluded that “Bitcoin is here to stay as an 'alternative' currency.” According to the Feb. 18 report, current Bitcoin prices greatly exceed JPMorgan’s estimates of its fair value, based on mining costs and its risks compared with gold.