CRYPTOS | 2/9/2022 7:34:11 PM GMT
American banking giant JP Morgan has predicted Bitcoin price could hit $150,000 in the long term.
Analysts at JP Morgan believe that capital inflow in Bitcoin could exceed private sector investment in Gold, estimated at $2.7 trillion.
Activity in USD Tether, considered an indicator of Bitcoin price rally, has dropped.
Large wallet investors continued accumulating Bitcoin through the recent bloodbath amidst rising demand from institutions.
Banking giant JP Morgan believes that Bitcoin price could reach $150,000, and the asset could compete with private investment in Gold. Analysts at JP Morgan believe that Bitcoin volatility needs to drop; once the asset is substantially less volatile, it could gain value.
Analysts at JP Morgan are bullish on Bitcoin
JP Morgan, an American banking giant, predicted Bitcoin price could hit $150,000 in the long term. JP Morgan had set a target of $146,000 for Bitcoin price in 2021. Analysts believe if investment inflow in Bitcoin continues, the asset could match private sector investment in Gold, estimated at $2.7 trillion.
Though analysts at the banking giant believe Bitcoin is currently overvalued, it could gain value as the asset’s volatility drops. Based on the current assessment, Bitcoin’s volatility is four times that of Gold.
In addition to JP Morgan’s prediction, activity in USD Tether is considered a reliable indicator of Bitcoin price rally points at a BTC bull run. Daily active addresses on the Tether network have dropped to two-year lows, following the high in mid-November 2021.
Historically, a drop in stablecoin transactions coincides with a Bitcoin price rally.
In addition to the drop in on-chain activity on USD Tether, large wallet investors saw a spike in Bitcoin accumulation. Mega whale addresses holding 1,000 or more Bitcoins have continued accumulation through recent Bitcoin bloodbaths.
@CryptoSultan21, a crypto analyst and trader, believes that Bitcoin’s bearish trend is drawing to a close, and the asset seems to have entered the final phase of a prolonged consolidation. The analyst argues that breaking past $43,000, Bitcoin price could rally towards $47,000.
FXStreet analysts believe that Bitcoin price is on track to $50,000.
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