JPMorgan Analysts Forecast Gold-Based Bitcoin Price of $45,000

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Since the beginning of the year, the main cryptocurrency price Bitcoin (BTC) has rallied considerably after the bear market of 2022.

In November 2022, the price of BTC was around $15,000, but by April 2023, the price had doubled to almost $30,000. The price rise has spread to other cryptocurrencies, including Ethereum (ETH). However, the rally was short-lived as the coin saw a slight drop in price over the past few weeks.

In recent times, there have been regulatory concerns in the United States that have contributed to the collapse of crypto-friendly financial institutions like Signature Bank and Silvergate Bank. It also impacted the prices of Bitcoin and other digital assets.

On the positive side, strategists at Wall Street giant JPMorgan Chase & Co led by Nikolaos Panigirtzoglou have predicted a bullish scenario for BTC, but this impending growth hinges on the potential surge in the price of gold. These strategists are convinced that Bitcoin could reach $45,000 if compared to gold in the portfolios of private venture capitalists or [volume]-adjusted conditions.

Right now, the price of gold is close to $2,000 an ounce and it has been seen over time that the two assets move in tandem. They are also considered alternative assets for investors looking to expand their financial portfolio.

“With the price of gold rising above $2,000, the value of gold held for investment purposes outside of central banks is currently valued at around [$3 trillion]. In turn, this implies a $45,000 price for bitcoin assuming bitcoin equals gold in the portfolios of private venture capitalists or [volume]- adjusted terms,” says the report from JPMorgan strategists.

Bitcoin halving likely to affect cost of production

Analysts consider this $45,000 rally to be seen as an upper boundary for the token.

This is clearly an indication of the limited potential of the digital asset beyond the increase brought about by the doubling of operating or production costs. With the arrival of Bitcoin halving in April or May 2024 (this event occurs every four years), it is assumed that the cost of producing BTC would reach $40,000.

“Indeed, the previous halving events of 2016 and 2020 were accompanied by a bullish trajectory for bitcoin prices that accelerated after the halving event,” the analysts reiterated.

Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real-world applications of blockchain technology and innovations to drive mainstream acceptance and global uptake of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a sports and agriculture enthusiast. Follow him on Twitter, Linkedin

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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