JPMorgan flags $45,000 as a guide for Bitcoin’s rally

A price of $2,000 per troy ounce of gold is equivalent to about $45,000 for Bitcoin, as the two assets typically move in tandem and are seen as alternatives. Analysts at JPMorgan reached this conclusion, The Block.

Analysts assumed that Bitcoin carries the same weight in private investors’ portfolios, adjusted for risk, as the main precious metal.

The $45,000 target is the upper bound of possible upside, indicating its “limited potential”.

JPMorgan noted that the upcoming halving in April–May 2024 would push the price of digital gold to $40,000.

The cost of mining has historically acted as an effective floor for value, the strategists explained.

In the near term, the analysts expect some lag in Ethereum’s price movement relative to Bitcoin. They flagged potential selling pressure from sellers through to the middle of the year after Shapella.

Overall, JPMorgan takes a cautious stance on digital assets amid problems of industry-friendly banks, regulatory pressure and the fallout from the FTX collapse.

Earlier Kaiko analysts drew attention to the weakening of the correlation between Bitcoin and Ethereum.