Large firms, such as JP Morgan and Ark Invest, expect the price of Bitcoin to reach between USD 130,000 and USD 470,000. The economic crisis and the multi-million-dollar stimulus plans have increased fears within financial markets leading more people to turn to Bitcoin.
Given that Bitcoin’s price has not stopped growing for several months; no one knows exactly where it will arrive. That has increased media attention around the pioneering cryptocurrency, as well as the importance that major global financial institutions attribute to this market. For this reason, there could be a radical increase in the price, which large firms forecast will reach between USD 130,000 and USD 470,000.
The Crypto Community Has Many Reasons to Be Optimistic
At the moment, the crypto community has every reason to be optimistic about the future of Bitcoin. Since March 2020, the first cryptocurrency’s market has been undergoing a structural transformation. Its base has shifted from small retail traders to large institutional investors. The former take advantage of the volatility of the price of Bitcoin to make profits, while the latter view the crypto asset as a long-term investment.
Investors have bought billions of US $ worth of Bitcoin and other crypto assets. This situation has led to a constant increase in its demand and, therefore, in its price. At the same time, investor optimism increases even more, along with demand. This happens in a virtuous circle that the global economic situation also encourages.
The economic contraction due to COVID-19 has joined government multi-million-dollar stimulus plans to lessen the effects of the crisis. These factors have increased fears within financial markets about a possible increase in world inflation. That leads more people to turn to store-of-value assets like Bitcoin to protect the value of their capital. That is exactly the advantage that major firms Ark Invest and JP Morgan see.
Large Firms Predict that Bitcoin’s Price Will Grow Significantly
Even though JP Morgan was initially skeptical of Bitcoin, it now predicts that the price of the cryptocurrency could rise significantly. They estimate that it could reach USD 130,000 in the short term, as long as the current trends driving its demand remain.
Analyst Welt Holger Zschaepitz said that JP Morgan sets a target of USD 130,000 for Bitcoin. However, the long-term risk-adjusted theoretical fair value of Bitcoin would drop to between USD 24,000 and USD 30,000. He adds that they make that prediction based on current volatility indices, which would converge with those of gold.
As for Ark Invest, the company is much more optimistic about the future of Bitcoin. They estimate that the price could even reach USD 470,000. This would be possible if the pioneering cryptocurrency manages to outperform gold as a store-of-value asset, exceeding the market capitalization of gold. Several analysts and crypto influencers believe that this goal is possible in the long term.
The first cryptocurrency has gained so much strength in the world market that even skeptical companies have decided to invest in it. On several occasions, renowned analysts have predicted that Bitcoin’s price could reach unimaginable levels.
By Alexander Salazar