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The advent of Bitcoin as “digital gold” could raise prices to $ 146,000, JPM By Reuters said.

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London (Reuters)-The digital currency Bitcoin has emerged as a gold rival and could trade as high as $ 146,000 if established as a secure asset, investment bank JP Morgan (NYSE :) said. Said on Tuesday.

Interest in the world’s largest cryptocurrency has skyrocketed this year, and investors see Bitcoin as an alternative to hedging inflation and depreciating the dollar. The rush has more than tripled the price of Bitcoin in the last six months to a record peak of $ 34,800 on January 2.

“The competition with gold has already begun in our minds,” said a strategist at a bank on Wall Street, with a recent $ 7 billion outflow from gold and more than $ 3 billion to the Grayscale Bitcoin Trust. Quoted the influx.

It could mark a new dawn of volatile digital currencies after years of play for speculators and retailers.

“Given how big financial investment is in gold, congestion of gold as an’alternative’currency means a big rise in Bitcoin in the long run,” JPM said.

Bitcoin is likely to outpace gold as millennials become a more important factor in the investment market over time and prefer “digital gold” over traditional bullions, JPM added.

With a market capitalization of $ 575 billion, the price of Bitcoin is about five times as high as 146,000, matching the value of private gold assets held in gold bars, coins, or exchange-traded funds. You need to jump into the dollar.

JPM strategists said Bitcoin’s volatility is conditioned on long-term convergence to gold’s volatility.

JPM believes that “current speculative enthusiasts” could push Bitcoin from $ 50,000 to $ 100,000, but such levels can be unsustainable until volatility leveled off. I warned when it turned out.

“Note that the spectacular Bitcoin Rally over the past few weeks has moved Bitcoin into a more challenging territory, not only in terms of its positioning background, but also in terms of its valuation,” the bank said. ..

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The advent of Bitcoin as “digital gold” could raise prices to $ 146,000, JPM By Reuters said. The advent of Bitcoin as “digital gold” could raise prices to $ 146,000, JPM By Reuters said.

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