Bullish exuberance about bitcoin reaching the elusive $100,000 milestone was fever-pitch. JPMorgan released a poll on Monday that showed the coin ending the year at half of the amount. This shifts the sentiment.
As part of its macroeconomic outlook for the year, the investment bank conducted a survey of 47 clients from December 13 to January 7.
This resulted in 41% of clients seeing the world’s most valued cryptocurrency ending the year at $60,000, an increase of 46% over Monday’s price. Only 5% of clients expect bitcoin to reach $100,000 by the end of the year.
Bitcoin has had a rough ride thus far, as all cryptocurrencies have faced selling pressures following a Federal Reserve that was hawkish.
Bitcoin fell below $40,000 on Monday, before rebounding to above $41,000. Bitcoin is now down 11% from its November record high of $69,000 and around 40% below where it was at the beginning of the year.
Nonetheless, many, including El Salvador’s bitcoin-loving president Nayib Bukele are optimistic that bitcoin will surpass $100,000 by 2022.
JPMorgan November 2021 stated that bitcoin could rise to $146,000 over the long-term if it’s volatility abates and institutions begin to prefer it to gold in their portfolios. This is 256% more than the current price of bitcoin. According to the bank, a price of $73,000 seems reasonable for 2022.
According to the bank, Bitcoin’s volatility is four to five times greater than gold. This would need to drop dramatically before institutional investors can plow in.
However, a new member joined the $100,000 bandwagon this Year. Goldman Sachs stated that bitcoin could reach this level, but only if it keeps taking market share from gold.