JP Morgan Analysts that Bitcoin’s price should currently be around $45k, due to its correlation with the price of gold.
Bitcoin’s upcoming “halving”, where BTC miner rewards are reduced, is due to take place next year and will likely increase its price.
Regulatory and economic pressures however are continuing to weigh down on BTC’s price.
Analysts at JP Morgan has suggested that Bitcoin’s real price should currently be around $45,000 and could correct to this level at some point this year. The reasoning lies in the price of gold, which is hovering around the $2,000 mark. BTC price tends to roughly follow the price of gold, due to the nature of both assets as hedges.
Despite the positive prediction for Bitcoin investors, JPM analysts are also suggesting that the world’s largest cryptocurrency is unlikely to rally far beyond that price without major factors at play. However, Bitcoin is due to undergo its next “halving“ in the first half of 2024 – which is likely to cause an increase in price as it has historically done so in the past. The halving will reduce the amount of BTC paid to Bitcoin miners, and results in the cryptocurrency becoming more scarce.
Previous Bitcoin “halvings”, such as those which occurred in 2016 and in 2020, caused price rallies in BTC and contributed to wider crypto market bullishness. Over the next 12 months, analysts at JPM expect BTC gains in the region of 25%, but regulatory uncertainty and global economic pressures could put a dampener on its price growth.
(About Bitcoin)
Bitcoin is the original decentralized digital currency that was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It operates on a decentralized peer-to-peer network, meaning that transactions can occur directly between users without the need for intermediaries like banks. Bitcoin uses cryptography to secure transactions and to control the creation of new units of the currency. Transactions are recorded on a public ledger called the blockchain, which allows anyone to verify the validity of a transaction and the ownership of bitcoins. The total supply of bitcoins is limited to 21 million, which is expected to be reached around the year 2140. Bitcoin’s price is highly volatile, and it has experienced numerous boom and bust cycles over the years.
