JPMorgan says bitcoin could rally as high as $100,000 - but warns that such a surge would be 'unsustainable'
Bitcoincould stage a monster rally in 2021 and reach $100,000, but pricing at that level "would prove unsustainable," JPMorgan said in a note on Monday.
- "We believe that the valuation and position backdrop has become a lot more challenging for bitcoin at the beginning of the New Year," JPMorgan said.
- At its market cap of $575 billion, bitcoin would have to surge to $146,000 to match the total private-sector investment in gold via exchange-traded funds or bars and coins, the note said.
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Bitcoin's 300% surge in 2020 could repeat this year, but such a move higher would be unsustainable, JPMorgan said in a note on Monday.
"While we cannot exclude the possibility that the current speculative mania will propagate further, pushing the
With a market value of $575 billion, bitcoin would have to surge to $146,000 to match the total private-sector investment in gold via exchange-traded funds or bars and coins, the note said.Read more: GOLDMAN SACHS: Buy these 37 stocks that could earn you the strongest returns without taking on big risks in 2021 as the recovery and vaccine distribution get underway
But that long-term upside target based on bitcoin becoming as valuable as the gold market is predicated on institutions becoming comfortable with the volatility associated with the
Another analyst who sees bitcoin hitting $100,000 is Fundstrat's Tom Lee, who said last week that the crypto asset could quadruple in 2021 as it experiences a similar parabolic rally as in 2017.
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