Every three months, global investment bank JP Morgan publishes a report analyzing all those investment prospects that are on the horizon or have taken place during the quarter. In its latest publication, in the section dedicated to digital assets, the bank clearly defined its intention to forecast a doubled increase in the price of Bitcoin to $146,000.
JP Morgan’s analysis of Bitcoin
The analyst behind this report, Nikolas Panigirtzoglou, explained in detail that the price of Bitcoin could easily reach this level if its volatility were to come to a partial halt. JP Morgan’s prediction is also based on a subsequent awareness among institutional investors. Investing in cryptocurrencies could become a tangible opportunity with a significant return comparable to that of gold.
In the short term, the price indicated by the Investment Bank’s analysis is around $73,000 as a forecast for the year 2022.
Panigirtzoglou stated thus:
“Digital assets are on a multi-year structural ascent, but the current entry point looks unattractive in our opinion for an investment horizon of 12 months as bitcoin appears to have returned to overbought territory”.
Moreover, returning to his bullish forecast, he added:
“The re-emergence of inflation concerns among investors during September/October 2021 appears to have renewed interest in the usage of bitcoin as an inflation hedge”.
The risks of volatility for Bitcoin
The discussion that is also taking place in the congressional folds in America with respect to inflation is leading many to focus their attention on other avenues of investment that cannot be tracked through the (no longer) safety of gold.
In addition, the presence of young investors, including international ones, who are betting on cryptocurrencies, is doing nothing but putting the two economic methods on an equal footing.
This is because any kind of downturn intended as a conduit for rising inflation would spill over into gold-related prices. This would only lead to an exponential growth not only of Bitcoin, in the long run, but also of the entire cryptocurrency world.
However, this is all linked to an implied investor demand for a brake on the volatility of the queen of cryptocurrencies. The implication would be an increasing interest from institutional investors.
In the published report, however, JP Morgan supports the analysis point that sees Bitcoin’s price reaching close to $73,000 in the near future.
Cryptocurrencies on the rise
Bitcoin’s unpredictability is a certainty for sure, but its continued upward swing leaves no doubt in the American investment bank’s analyst’s mind.
Indeed, adding:
“There is little doubt that cryptocurrencies and digital assets more broadly are an emerging asset class and thus on a multi-year structural uptrend”.
The analyst also brings attention to the change associated with an exponential growth of cryptocurrencies during the pandemic period. This is because people are starting to perceive a lack of security regarding institutional finance linked to gold and consequently conditioned by possible high inflation.
It is worth noting that a few weeks ago, the CEO of JP Morgan, Jamie Dimon, was deeply sceptical about the Bitcoin dimension, going so far as to counter the interest of investors in cryptocurrencies.
In reality, what is certain, apart from the Bank’s forward-looking analysis report, is the ever-increasing demand from clients for cryptocurrency investment offerings.
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