Financial giant JPMorgan recently stated in a new report that the world’s number one digital currency by market cap – bitcoin – could potentially reach a price of around $130,000 by the time the year is out.
JPMorgan Is Predicting Big Things for BTC
In the document, JPMorgan writes the following:
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. A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is likely a multi-year process. This implies that the above $130,000 theoretical BTC price target should be considered as a long-term target.
JPMorgan appears to be one of those companies that is having a hard time making up its mind about BTC. In the past, the company has issued notes and reports commenting about how volatile and risky it is. The company has stated that BTC, in one way or another, is not all it is cracked up to be.
At the same time, the firm has also commented that institutions are continuing to take notice of the asset, and that if all goes well, the currency could see its recent spikes become the norm throughout the rest of the year and beyond.
It has also issued separate reports discussing retailers and their attitudes towards crypto. According to this document, retailers are still outdoing institutions in the world of crypto investing by a longshot, and thus they should not be discounted or thrown to the side.
As it stands, JPMorgan is pointing out the fact that bitcoin appears to have even stronger volatility than gold, and should things remain as they are throughout 2021, the currency could wind up breaking into six-figure territory during the year’s final days. Its most recent report suggests that bitcoin volatility appears to be taking a break at the 73 percent mark.
This, the document says, could wind up becoming something of a norm. It will grant bitcoin rest breaks here and there, which will make it much more attractive to institutional investors. They will then feel more inclined to get involved.
It’s Being Used as a Method of Payment
But for men like Paolo Ardoino – the chief technology officer at Bitfinex – the answers to BTC’s future lie not in how many institutions get involved, but in how often it is used as a payment method, which is what it was designed for. He explains in a recent statement:
After a stellar performance in the first quarter that saw the king of crypto record an all-time high of $61,700, bitcoin enters April leading a seemingly buoyant cryptocurrency market. As PayPal’s recent announcement demonstrates, the inherent volatility of digital tokens is no barrier to their increasing use in payments. This rally could possibly herald bitcoin’s first meaningful encroachments into the legacy financial system and credit card industry.