While JPMorgan Chase expects Bitcoin (BTC) to reach $ 130,000, Ark Invest thinks BTC will surpass below the market value.
These positive macro predictions of both funds are based on the rarity of cryptocurrency which has made it gain popularity as a safe haven asset.
Bitcoin Price Index: How much is 1 Bitcoin in TL? (BTC TL)
What is the reason for positive predictions about Bitcoin?
Inflation concerns and increasing liquidity in financial markets cause reserve currencies such as the dollar to depreciate.
For example, Ark Invest predicts that BTC will approach $ 500,000 in the future, given that it thinks that Bitcoin will surpass below the market value. Bitcoin’s market cap is currently about 10 percent of gold’s market value.
BREAKING: Ark Invest believes #Bitcoin’s market capitalization will one day “comfortably eclipse” that of gold, and exceed $10 trillion
— Market Meditations (@MrktMeditations) April 5, 2021
Gemini Co-Founder Tyler Winklevoss expressed a similar opinion in August 2020:
“The market value of gold today is $ 9 trillion. If we evaluate Bitcoin from the gold frame and if Bitcoin proceeds in this way, it can be said that Bitcoin has 45 times less value than it should be. In other words, the price of Bitcoin can increase 45 times the current price and 500 thousand can reach dollars. “
JPMorgan predicts a much more moderate target of $ 130,000, which may be a more realistic price target in the short term. The market cap of BTC will be $ 2.73 trillion if it reaches this price.