hoangutat02
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According to JPMorgan analysts, the current price of gold hovering around $2,000 per ounce indicates that the price of Bitcoin may soon rise to $45,000. The reason behind this projection is the positive correlation between these two assets, as they tend to fluctuate in tandem, and Bitcoin is considered by investors as an alternative to gold.
The JPMorgan analysts, led by expert Nikolaos Panigirtzoglou, wrote in their recent analysis:
"With the price of gold surpassing $2,000, the total value of gold in circulation outside of central banks is estimated to be around $3 trillion. This implies that Bitcoin should have a price of $45,000 under the assumption that the proportion of Bitcoin and gold remains balanced in private investors' portfolios."
The prediction of $45,000 is also not overly optimistic. According to JPMorgan, BTC has limited room for growth because the upcoming Halving event in April-May 2024 will double the cost of mining one Bitcoin to $40,000.
"In the past, the mining cost of Bitcoin has acted as a lower effective bound. After each Halving, we have witnessed a bull-run in the market, evidenced by the Halving events in 2016 and 2020."
The Halving in 2024 will reduce the mining reward by half, from 6.25 BTC to 3.125 BTC.
As for the second-largest cryptocurrency, Ethereum (ETH), JPMorgan analysts believe that ETH will continue to face selling pressure from now until mid-year or longer. Although the number of ETH on exchanges has reached its lowest point since 2016 due to the staking trend, there is still selling demand from some users.
"Therefore, we believe Ethereum will underperform Bitcoin in the near future."
Overall, JPMorgan maintains a cautious stance on digital assets due to regulatory crackdowns from the United States, the lack of banking-crypto networks, and the aftermath of the FTX collapse.
At the time of reporting, BTC is trading around $26,700, and ETH around $1,830.
The JPMorgan analysts, led by expert Nikolaos Panigirtzoglou, wrote in their recent analysis:
"With the price of gold surpassing $2,000, the total value of gold in circulation outside of central banks is estimated to be around $3 trillion. This implies that Bitcoin should have a price of $45,000 under the assumption that the proportion of Bitcoin and gold remains balanced in private investors' portfolios."
The prediction of $45,000 is also not overly optimistic. According to JPMorgan, BTC has limited room for growth because the upcoming Halving event in April-May 2024 will double the cost of mining one Bitcoin to $40,000.
"In the past, the mining cost of Bitcoin has acted as a lower effective bound. After each Halving, we have witnessed a bull-run in the market, evidenced by the Halving events in 2016 and 2020."
The Halving in 2024 will reduce the mining reward by half, from 6.25 BTC to 3.125 BTC.
As for the second-largest cryptocurrency, Ethereum (ETH), JPMorgan analysts believe that ETH will continue to face selling pressure from now until mid-year or longer. Although the number of ETH on exchanges has reached its lowest point since 2016 due to the staking trend, there is still selling demand from some users.
"Therefore, we believe Ethereum will underperform Bitcoin in the near future."
Overall, JPMorgan maintains a cautious stance on digital assets due to regulatory crackdowns from the United States, the lack of banking-crypto networks, and the aftermath of the FTX collapse.
At the time of reporting, BTC is trading around $26,700, and ETH around $1,830.
