The latest news from crypto world is that Bitcoin has broken another record. On Tuesday, BTC went over $50,000 for the first time in history. Two days later, the price of the world’s most popular cryptocurrency went even further, eventually reaching $52,100.
Less than a year before, at the time was the COVID-19 pandemic had started to heat up, the price of BTC went under $5,000. Its value has increased more than tenfold since and everyone’s wondering when the bullish trend is going to end.
JPMorgan Analyst Calls for Caution Regarding BTC Price in 2021
Nikolaos Panigirtzoglou is one of the not-too-many economy experts to express concern about the future price of Bitcoin. JPMorgan’s global markets strategist believes crypto enthusiasts should curb their enthusiasm, especially when the short-term price of Bitcoin is concerned.
As he hinted in an interview for CNBC, people might lose their interest in cryptocurrencies after the end of the pandemic. Sure, Bitcoin isn’t going to be forgotten, but the flow impulse is bound to slow down once things come back to normal.
“When the economies reopen, people go back to the office, they have less time to trade at home,”
In his words, retail participation in the Bitcoin trade has been high over the last couple of months, although the main factor behind Bitcoin’s rally remains institutional involvement. Big companies like Tesla (which bought $1.5 billion worth of BTC) caused the price of Bitcoin to go up.
The conclusion is that even if the retail involvement subsides, Bitcoin’s value will be kept high by institutional investors. For this reason, JPMorgan’s long-term price target for Bitcoin remains as high as ever.
JPMorgan Sets Long-Term Price Target for Bitcoin at $146,000
A few weeks ago, JPMorgan released a note to its clients regarding the future of Bitcoin. The company’s team of analysts thinks the BTC price might reach $146,000.
JPMorgan’s long-term price target does not seem too crazy considering that big companies continue Bitcoin adoption. Over the last couple of weeks, several big-name institutions have confirmed they’re planning to embrace Bitcoin, including the following:
- Mastercard – Earlier this month, the company said it would support popular cryptocurrencies in its payment network
- Apple Pay – The company is planning to start accepting Bitcoin as a payment option both in its retail stores and apps
- BNY Mellon – The company is planning to start offering to store Bitcoin for its clients
Still, the no.1 reason why JPMorgan believes the price of Bitcoin could increase by almost three times in the next couple of years is that the crypto has already started to compete with gold. The competition between the two assets can only get fiercer in the future.
The thing is that Bitcoin has already proved its worth as a secure asset during financial market turmoil. It recovered its value during the COVID-19 pandemic, as well as went up during the election troubles in the US.
Lessons from the Great Crypto Crash of 2017
Everyone seems to agree that the price of Bitcoin is going to get much higher in the future. However, there doesn’t seem to be a consensus regarding its price in 2021. Some believe we could see a similar scenario to the one that happened in 2017.
As a reminder, that’s when we saw Bitcoin going from only a couple of thousand to $19,783. A big crash followed, with Bitcoin losing about 80% of its value. Its price remained below $20,000 for three years when the second Bitcoin surge started.