Bitcoin has the potential to reach US$146,000 in the long term as it competes with gold as an asset class, according to JPMorgan Chase & Co.
Bitcoin’s market capitalisation of around US$575 billion would have to rise by 4.6 times — for a theoretical price of US$146,000 — to match the total private sector investment in gold via exchange-traded funds or bars and coins, strategists led by Nikolaos Panigirtzoglou write in a note. But that outlook depends on the volatility of Bitcoin converging with that of gold to encourage more institutional investment, a process that will take some time, they say.
