JPMorgan Renews Its Long-Term Price Target of $146,000 per Bitcoin

Bitcoin is currently going through one of its longest bullish rallies. With a market capitalization of nearly $1.2 trillion, BTC is strengthening its position as a valuable investment tool. JPMorgan, the US-based investment bank, recently renewed its price target of $146,000 for Bitcoin amid a jump in institutional adoption.

A report published by Business Insider citing JPMorgan’s research note highlights the growing demand for Bitcoin and other digital currencies. "Considering how big the financial investment into gold is, any such crowding out of gold as an 'alternative' currency implies big upside for bitcoin over the long term," Nikolaos Panigirtzoglou, a JPMorgan strategist, said in the report.

JPMorgan also outlined some issues related to the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in BTC. The bank mentioned that the long-term price growth of Bitcoin depends upon a consistent decline in the overall volatility related to the crypto asset. Commenting on the global adoption of digital currencies, JPMorgan said that Bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term emerged as a clear winner in the post-pandemic international economy. Several global hedge funds and family offices entered the crypto market in 2021.

Bitcoin as an Inflation Hedge?

Global inflation is on the rise. Countries around the world have reported a sharp increase in inflation amid economic issues caused by the pandemic. According to JPMorgan, Bitcoin is tough competition to Gold as an inflation hedge.

"The re-emergence of inflation concerns among investors during September/October 2021 appears to have renewed interest in the usage of BTC as an inflation hedge. Bitcoin's allure as an inflation hedge has perhaps been strengthened by the failure of gold to respond in recent weeks to heightened concerns over inflation," Panigirtzoglou added.

In comparison with Gold, Bitcoin’s high volatility is its only weakness. BTC’s current volatility is nearly five times higher than Gold. Despite the volatility concerns, JPMorgan highlighted the possibility of BTC breaking above the price level of $146,000 in the future.