Bitcoin rally: JPMorgan announces new price target
- US banking giant JPMorgan says Bitcoin should rise to around $165,000 on a volatility-adjusted basis relative to gold. The firm's models suggest the reserve cryptocurrency would need to rise by about 40 percent from current levels.
- The sharp rise in the price of gold last month has also strengthened the relative attractiveness of BTC. Both assets benefit from their status as “debasement hedges,” which involve buying scarce assets like gold or Bitcoin to hedge against the devaluation of fiat currencies.
- In particular, the escalating government deficits, questions about the independence of the US Federal Reserve and the general trend away from the US dollar are currently playing a major role.
- Only at the end of August did JPMorgan declare Bitcoin undervalued, but at that time it set a price target of only $126,000.
- While crypto bulls are currently euphoric, the following price levels still need to be overcome before a new all-time high can be reached. If you want to buy Bitcoin, you can do so at Bitpanda, among others.
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