This is what needs to happen for bitcoin to reach $45K this year, according to JP Morgan

Should bitcoin show higher price performance as well as an investment structure similar to that of gold, its price could rise to $45,000, according to a note from analysts at JP Morgan.

However, the multinational investment bank believes it has a big screw up.

• Bitcoin’s YTD performance has been impressive, as the asset entered 2023 below $17,000 after a turbulent 2022. However, it broke above that level in the first few weeks of the new year and rose above $30,000 in the following months.
• Despite the subsequent retracement to its current level of around $27,000, BTC is still up 60% from where it started 2023.
• JP Morgan analyst believe The cryptocurrency may soon rise by as much as 75%. To do this, however, requires bitcoin to be accepted as an investment instrument similar to gold, which many maximalists have argued over the past several years.

“Investors are currently holding approximately $3 trillion in gold for investment purposes outside of central banks, which, if equated with bitcoin, presents a price of $45,000. This projection is based on the assumption that bitcoin will be equivalent to gold in the portfolio of private investors in terms of capital at risk or volume,” the note reads.

• The precious metal has also been rising since the start of the year, although in a more modest fashion. It entered 2023 at around $1,830/oz and jumped above $2,000 in early May. However, it has since declined to $1,950/oz, meaning it is up about 6.2% YTD.
• JPM strategists also outlined the upcoming 2024 halving, which could be another factor driving price growth for BTC.

“Historically, bitcoin’s production cost has acted as an effective minimum threshold. Previous halving events in 2016 and 2020 drove bitcoin prices to gain momentum after the halving event.

• The popular AI chatbot – ChatGPT – also recently gave us his thoughts on the fourth phase, which is due in 2024.

Should bitcoin show higher price performance as well as an investment structure similar to that of gold, its price could rise to $45,000, according to a note from analysts at JP Morgan.

However, the multinational investment bank believes it has a big screw up.

• Bitcoin’s YTD performance has been impressive, as the asset entered 2023 below $17,000 after a turbulent 2022. However, it broke above that level in the first few weeks of the new year and rose above $30,000 in the following months.
• Despite the subsequent retracement to its current level of around $27,000, BTC is still up 60% from where it started 2023.
• JP Morgan analyst believe The cryptocurrency may soon rise by as much as 75%. To do this, however, requires bitcoin to be accepted as an investment instrument similar to gold, which many maximalists have argued over the past several years.

“Investors are currently holding approximately $3 trillion in gold for investment purposes outside of central banks, which, if equated with bitcoin, presents a price of $45,000. This projection is based on the assumption that bitcoin will be equivalent to gold in the portfolio of private investors in terms of capital at risk or volume,” the note reads.

• The precious metal has also been rising since the start of the year, although in a more modest fashion. It entered 2023 at around $1,830/oz and jumped above $2,000 in early May. However, it has since declined to $1,950/oz, meaning it is up about 6.2% YTD.
• JPM strategists also outlined the upcoming 2024 halving, which could be another factor driving price growth for BTC.

“Historically, bitcoin’s production cost has acted as an effective minimum threshold. Previous halving events in 2016 and 2020 drove bitcoin prices to gain momentum after the halving event.

• The popular AI chatbot – ChatGPT – also recently gave us his thoughts on the fourth phase, which is due in 2024.