Analysts at the US bank JP Morgan, led by renowned specialist Nikolaos Panigirtzoglou, published a new report in which they renew their predictions for the price of bitcoin (BTC). Experts believe that if a number of factors are met, the price of the leading cryptocurrency could climb to $ 146,000 in the long term.
Nikolaos Panigirtzoglou is one of the most recognized analysts in the financial market.
Specialists recognize two key points for BTC to have another incredible rally: that its volatility goes down and that investors who bet on gold as a store of value against fiat currencies enter the crypto market.
After the economic crisis triggered by the spread of the coronavirus, inflation is going through record levels in the main world powers since 2008, mainly in the United States. In that scenario, BTC has stood out as the best investment option, while gold went virtually unnoticed.
“The resurgence of inflation concerns among investors during September and October 2021 appears to have renewed interest in using bitcoin as a hedge against inflation,” the experts noted.
Panigirtzoglou and company believe that new generations of investments will further deepen crypto adoption and start to move away from gold. Considering the flow of money that the precious metal currently represents, any move towards BTC would represent “a huge advantage” for the cryptocurrency.
However, one downside of BTC to gold is volatility. Cryptocurrency price movements are 4-5 times that of gold, and many investors – retail and institutional – are still reluctant to get involved for that reason.
Lastly, analysts warned that a further slide toward $ 30K is also a real possibility, but noted that its price target could be $ 73,000 by 2022.