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JPMorgan Estimates Bitcoin To Hit $150k When Market Cap Equals Gold’s

By:
Aaryamann Shrivastava

According to the JPMorgan strategists, the fair value of Bitcoin should actually be around $38,000 instead of the current $43,582.

JPMorgan Estimates Bitcoin To Hit $150k When Market Cap Equals Gold’s

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The recovery of a market is usually supported by bullish cues from factors beyond the crypto space. This means that statements from certain influencers hold a lot of strength in swaying the movement of price action.

Could that be the case with Bitcoin as well at the moment?

Bitcoin To Hit $150K?

That is what the strategists at JPMorgan Chase & Co. have suggested today. In a report from Bloomberg, the JPMorgan team led by Nikolaos Panigirtzoglou estimated the king coin to hit the aforementioned figure under the circumstances where Bitcoin’s market capitalization is actually on par with Gold’s current market cap. 

At the time of this report, the total value of all existing Gold came up to $11.611 trillion. Whereas the king of cryptocurrencies is cumulatively valued at around $825.46 billion.

However, due to the high volatility that ensues in the crypto markets, 4 times as high as that of gold as per the strategists, Bitcoin’s market cap has dwindled from its height of $1.27 trillion when BTC was at $67.5k.

This is why factoring in the existing volatility, Bitcoin’s “fair value” was placed around $38,000. Although in the situation where the same volatility is reduced by as much as 3 times, the same fair value could rise to $50,000.

Adding on to the same point, the strategists stated:

“The biggest challenge for Bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption”

Although the fair value has been suggested to be lower than the current prices, the JPMorgan team definitely expects Bitcoin to rise higher in the future as they raised their long-term theoretical target from $146k that they estimated back in January 2021.

Still Above the Realized Price

The fair value calculated by JPMorgan is still higher than the realized price of Bitcoin which means that even at that level, the realized price of the king coin would act as strong support. Right now Bitcoin’s realized price is at $24k.

Realized price is basically the value of the coins at the time that they were bought. So in a market where overselling causes the price to fall close to the realized price, buyers jump in to maintain the support.

Bitcoin’s realized price is at $24k at the moment | Source: BGeometrics

The only time the market witnessed a fall below this level was during the capitulations of 2018 and 2020.

And even going forward Bitcoin’s price will stay above this level. For now, the king coin is looking at a consolidation around $43k for the next few days.

About the Author

Holding a Mass Media Degree has enabled me to better understand the nitty-gritty of being a journalist and writing about cryptocurrencies’ news and price movements, effects of market developments, and the butterfly effect of individual assets nurtured me into a better investor as well.

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