These first couple of days of 2021, the assessment and situation setting has shifted to a lot more challenging for the most popular cryptocurrency, Bitcoin (BTC). Still, the above-USD 146,000 theoretical price target should be considered as a long-term target, according to strategists at JPMorgan Chase & Co.
Nevertheless, they do not eliminate that the current “speculative mania” will diffuse further, pushing BTC toward the “consensus region of between USD 50,000 – USD 100,000,” which would be unsustainable, Bloomberg reported.
Meantime, overcrowding of gold as an ‘alternative’ currency implies a significant upside for bitcoin over the long term: “A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process.”
Additionally, Sonny Singh, Chief Commercial Officer (CCO) of primary crypto payment processor BitPay, considers that BTC goes up to USD 40,000 – USD 45,000 “the next month or so” when the market might start feeling a more tangible sell pressure.
Forecasting that BTC will become a trillion-dollar currency this year, Singh mentioned in an interview with Bloomberg,
“I think when it gets that high, you will start seeing something else come into play.”
The current market capitalization of almost USD 580bn should increase by around 70% to reach this milestone.
The CCO also didn’t rule out that the US government might start buying BTC, but they might introduce more aggressive regulation before that.
As announced, at the beginning of 2020, Singh figured that BTC would rise above USD 20,000 that year. The price reached that level in December.
At the time of writing (05:12 UTC), BTC trades at USD 31,186 and is down by 6% in a day, trimming its weekly gains to less than 19%. The price rallied by 62% in a month and 314% in a year. It surpassed USD 34,500 this past Sunday.