Mark Rodda, a market analyst from Melbourne who runs IG trading, recently addressed JP morgan’s comments on a possible $145,000 (188,000 AUD) price target for Bitcoin.
The investment bank recently called Bitcoin the “digital gold for Millenials” as price reached $35k, marking a new all-time high and possibly reaching $145,000 by the end of 2021, according to their market analysts from Wall Street. But Rodda thinks BTC still has a “few years” to meet that price:
“This price target is one that would be met in the longer-term, over the next few years, rather than something that might occur at some stage in 2021.”Stated Rodda for News.com.au
Bitcoin was recently traded as high as $35,737, a 26% gain after falling to $27,700 on January 4. The recent upward rally called the attention of JP Morgan and other institutional analysts, who now think BTC could replace gold as the best store of value, and that the “Bitcoin versus Gold” race has started.
Although Rodda thinks that Bitcoin increased its market cap with a strong bullish sentiment, it doesn’t have to replace gold necessarily, as both assets can become better stores of values against declining fiat and inflation.
2021, a “Great Year” for Cryptocurrencies
Rodda also shared his thoughts on other digital assets, stating that “2021 should be a great year” for cryptocurrencies, after Ethereum, the second currency with the largest market cap made an outstanding upward rally with a 600 % Return Of Investments (ROI).
Byron Goldberg, director of Australia-based crypto company Luno, made similar statements to Rodda’s, adding that institutions are also seeking better stores of value — the reason behind the massive hoard of Bitcoin by the end of 2020, raising concerns about BTC’s liquidity.
“At present, gold has a market cap of roughly US$10 trillion. If 30 per cent of value transfers from gold to Bitcoin over the next few years, the price of a Bitcoin would be worth around US$140,000 – a similar figure to JPMorgan’s price target, which is 300 per cent away from here”
It appears that 2021 could be the year where cryptocurrencies could take a broader audience, thanks to the massive bullish sentiment they had in 2020. On top of that, the director of Binance Australia stated that cryptocurrencies could play a major role in digital economies:
We can confidently say that the increased positive sentiment over the past 12 months from the retail and institutional crowd will not disappear anytime soon. I believe a post-pandemic world will see digital economies mature across many industries, which could garner support to push digital assets to a new level of adoption.”stated Jeff Yew, CEO of Binance Australia for News.com.au
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