Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.
The continued failure of gold to respond to heightened concerns over inflation in recent weeks has increased the allure for BTC as a better inflation hedge in the industry.
In what now looks like a stand it would always take the biggest bank in the United States JPMorgan has again predicted that Bitcoin is an asset with the potential to hit the $146,000 price level before the end of the year.
The $146,000 value the bank is predicting represents a 130 percent increase from its current value of $63,160 as of Wednesday, which is one of its highest values of all time.
The foremost bank made the latest prediction in a recently published report. In the report, the bank takes a more cursory look at the crypto industry whilst giving comments that would be sure to gladden lots of crypto enthusiasts.
According to the report, its decision to predict that BTC has the potential to hit its predicted value is based on the expectation that the high volatility nature of the industry subsides and institutions would begin to prefer the flagship digital asset to gold in their portfolios.
One of the bank’s major strategists, Nikolaos Panigirtzoglou, said that the visible re-emergence of the coin over the last two months has obviously piqued the interest of investors again, reaffirming the belief that it can be used as an inflation store.
“The re-emergence of inflation concerns among investors during September/October 2021 appears to have renewed interest in the usage of bitcoin as an inflation hedge,” said he.
He added that the continued failure of gold to respond to heightened concerns over inflation in recent weeks has increased the allure for BTC as a better inflation hedge in the industry.
Currently, in the United States alone, inflation is at a 13-year high, a figure that represents the inflation pattern of the world in general.
Speaking further, Nikolaos insisted that there is almost no iota of doubt that BTC’s competition with gold will continue, as millennials become more powerful in the investing universe, given their preference for cryptocurrencies.
“Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” he argued.
However, JPMorgan said that for the $146,000 price to come true, the huge volatility of Bitcoin would have to fall sharply, so that investors without a high taste for risks will be comfortable enough to add it to their portfolios.
Bitcoin’s volatility is currently around four to five times higher than gold, the bank said. That would have to fall dramatically before institutional investors plow in.