“JPMorgan Analysts Predict $45,000 Valuation for Bitcoin Compared to Gold”

A $2,000 troy ounce of gold is equivalent to $45,000 in bitcoin, as the two assets tend to move in tandem and are viewed as alternatives. JPMorgan analysts came to this conclusion, writes The Block.

The specialists were guided by the assumption that the first cryptocurrency has the same risk-adjusted weight in the portfolios of private investors as the main precious metal.

The announced $45,000 valuation is the upper limit of a possible upside move, which indicates its “limited potential”.

JPMorgan noted that the upcoming halving in April-May 2024 will lead to an increase in the price of digital gold to $40,000.

“Cost of production has historically acted as an effective lower bound on cost”– explained the strategists.

In the short term, experts expect some “lag” in the growth of the price of Ethereum in dynamics from the first cryptocurrency. They pointed to possible selling pressure until the middle of the year after Shapella.

Overall, JPMorgan is taking a cautious stance on digital assets due to the concerns of industry-friendly banks, regulatory pressure, and the fallout from the FTX collapse.

Recall that Kaiko analysts drew attention to the weakening of the correlation between Bitcoin and Ethereum.

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2023-05-26 14:55:00
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