JPMorgan, one of the largest investment banks in the world, considers Bitcoin (BTC) could eventually reach $650,000 if its market capitalization becomes that of gold. JPMorgan released a report in which they explain that Bitcoin and gold have been the main beneficiaries of the pandemic.
Could Bitcoin Reach $650,000 as JPMorgan Suggests?
In recent months, Bitcoin has been growing and expanding at very fast rates. The digital asset was able to attract a large number of investors from all over the world. However, the most important thing to mention here is related to how companies are starting to place their funds in Bitcoin.
The investment bank considers that it has been absolutely remarkable the way in which Bitocin expanded this year. While other assets have large market capitalizations (above trillions), Bitcoin is still valuated at $0.44 trillion. Only this year, Bitcoin grew $0.3 trillion in market validation, allowing it to reach $24,000 a few hours ago.
About it, JPMorgan wrote:
“Alternative ‘currencies’ such as Gold and Bitcoin have been the main beneficiaries of the pandemic in relative terms growing their assets (for investment purposes) by 27% and 227%, respectively.”
If the digital currency continues expanding and attracting a large number of investors. It might be possible for it to hit $650.000. This would happen if Bitcoin reaches the same market capitalization of gold. Of course, the longer it takes for Bitcoin to reach this value, the lower the price it will need considering new BTC coins are released to the market on a daily basis.
As JPMorgan explained, the price of the largest digital asset will not get there tomorrow. However, considering that there is a large institutional adoption all over the world, it might get there sooner rather than later, according to the report.
MicroStrategy, Ruffler and MassMutual are just some of the companies that invested millions of dollars in Bitcoin. In the future, there could be more companies investing in Bitcoin and helping the price of BTC reach new highs.
Just this year, BTC moved from $3,800 (after the massive Coronavirus crash) to $24,000. This has been a very positive year for Bitcoin and things could be getting even better for 2021. If institutional investors continue entering the market, JPMorgan’s prediction might not be so crazy after all.
At the time of writing this article, Bitcoin is being traded above $23,800 and it has a market capitalization of $0.44 trillion.