Bitcoin Price Rebounds, JPMorgan Sets Price Target at $146,000
Bitcoin price rebounded above the $31,000 level after the largest single-day decline in Monday trading, extending the unprecedented volatility into 2021 that initially started since the beginning of the September quarter of 2020.
Bitcoin price hit an all-time high of $34,000 on Sunday but the largest digital coin saw a historic one-day selloff on Monday – which slashed the price to $29000 level. The price of bitcoin recovered on Tuesday and it is currently trading around the $31,000 level.
The largest digital coin rose sharply in the December quarter amid a robust adoption rate along with the massive inflow of institutional investments.
The cryptocurrency soared by 171% in the fourth quarter, pushing 2020 gains to 305%.
Fundamentals indicators hint more gains
Although Bitcoin fell after hitting record levels, the fundamental factors are backing the bull-run into fiscal 2021.
The key price catalysts include volatility across traditional financial markets, a weak dollar, and people’s shift towards online platforms. Moreover, the substantial growth in institutional investments and backing from some of the prominent industry names added to the growth forecast.
Square and PayPal’s strategy of integrating bitcoin could turn out to be the biggest price driving factor in fiscal 2021.
What’s more, the supply scarcity has been making bitcoin more valuable with every passing day. The total supply of the largest digital coin is limited to 21 million bitcoins, while almost 18 million bitcoins have already been mined and are in circulation.
“With bitcoin having broken $30,000, I think it’s very likely that the asset will eventually pass $100,000 per coin,”
Sergey Nazarov, co-founder of blockchain firm Chainlink said.
JPMorgan sets a $146,000 price target
JPMorgan analysts claim that Bitcoin price will hit $146,000 in the years ahead amid increasing popularity as an alternative to gold.
“A crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,”
strategists led by Nikolaos Panigirtzoglou said.
“Bitcoin’s current market capitalization of around $575 billion would have to rise by 4.6 times – for a theoretical Bitcoin price of $146,000 – to match the total private sector investment in gold via exchange-traded funds or bars and coins,”
Nikolaos Panigirtzoglou added.