A financial strategist hailing from JP Morgan has recently shared some projections regarding the short-term price movement of Bitcoin. The report was compiled under the supervision of Nikolaos Panigirtzoglu has suggested that Bitcoin prices can get a positive inertia from the improving prices of gold.
To this end, JP Morgan has predicted that the flagship crypto is set to score $45K. Many investors view Bitcoin as digital gold and now they may increase their investment in both Bitcoin and Gold markets.
A new report published in Block has suggested that the latest projections for gold price are reaching $2000 per ounce of the metallic commodity. The current price of gold translates into a Bitcoin price of $45k.
The report has also projected that total gold reserves investments outside of the Central Bank reserves are valued at $3 trillion. The strategists have maintained that it can mean that Bitcoin outflows can rival gold in private investment portfolios in terms of risk and volume-adjusted assets.
Upcoming Halving Event
JP Morgan has shared the $45K price projection for Bitcoin on the upside. The firm has maintained any price hikes beyond $45K can get a boost on account of the upcoming halving event.
It is important to note that the Halving event is an intrinsic algorithmic event of the Bitcoin blockchain where the mining rewards are slashed in half after every 4 years.
This mechanism has been introduced in Bitcoin to control the supply and prevent any steep decline in price on account of excessive market inflows.
The next Bitcoin halving event is set to take place in May or April of 2024. Historically, Bitcoin halving events have made for a positive price movement. Halving also increased Bitcoin mining costs by two folds. After the latest event, it will rise to $40K. However, production cost acted as an amplifier for Bitcoin prices following the 2016 and 2020 bull runs.
On the other hand, many investors are waiting to see the impact of current traditional financial market dynamics panning out on the price of the crypto markets with a greater expectation of upside.
JP Morgan strategists’ report translates into a 25% return on Bitcoin during the next 12 months. This time frame includes the Bitcoin price expectations and possible changes in the pretext of the 2024 halving event.
Meanwhile, the firm has retained that Ethereum can print conservative returns in comparison to Bitcoin for the short-term price movement. At the same time, the firm has maintained that Ethereum price dynamics may shift following the Shanghai update.
Shanghai update is a hard fork that will complete the transition of the blockchain from a PoW network to PoS. Nevertheless, JP Morgan has retained a cautious stance on crypto investments citing regulatory challenges in the USA.
At press time, Bitcoin price is trading at $26,823 after gaining 1.79% during the last 24 hours and the silver crypto Ethereum is priced at $1,832 with 1.85% appreciation on the intraday trade. JP Morgan analysts have also aired concerns about the aftereffects of FTX collapse and the regulatory obstacles crypto-compliant banks are facing.