JPMorgan Analysts: Bitcoin Price Could Hit $45,000 Due to Rising Gold Prices

JPMorgan analysts predict that Bitcoin (BTC) could surge to $45,000, driven by rising gold prices and the upcoming Halving event.

JPMorgan Analysts: Bitcoin Price Could Hit $45,000 Due to Rising Gold Prices

According to JPMorgan analysts, the current gold price, hovering around $2,000 per ounce, suggests that Bitcoin could soon reach $45,000. This is due to the positive correlation between the two assets, with Bitcoin often viewed as an alternative to gold by investors.

Led by expert Nikolaos Panigirtzoglou, JPMorgan's latest analysis states:

"With gold prices exceeding $2,000, the value of gold outside central banks is currently estimated at around $3 trillion. This implies that BTC should be priced at $45,000, assuming that BTC and gold have a balanced weight in the risk portfolio of private investors."

The $45,000 forecast is seen as an upper bound rather than overly optimistic. JPMorgan notes that BTC has limited room for growth, as the upcoming Halving in April-May 2024 will double the cost of mining a Bitcoin to $40,000.

“Historically, Bitcoin’s mining cost has acted as an effective lower bound. Following each Halving, we have seen a market bull run, as evidenced by the 2016 and 2020 Halvings.”

The 2024 Halving will reduce the block reward from 6.25 BTC to 3.125 BTC.

For Ethereum (ETH), the second-largest cryptocurrency, JPMorgan analysts expect continued selling pressure through mid-year or beyond. Despite a record low of ETH on exchanges due to staking trends, there is still some selling demand from users.

“As a result, we believe Ethereum will underperform Bitcoin in the near term.”

Overall, JPMorgan maintains a cautious stance on digital assets due to regulatory crackdowns in the US, the lack of banking-crypto networks, and the ongoing fallout from the FTX collapse.

At the time of reporting, BTC is trading around $26,700 and ETH around $1,830.

1h Chart of BTC/USDT on Binance at 12:50 PM, 27/05/2023

1h Chart of ETH/USDT on Binance at 12:50 PM, 27/05/2023