The price of Bitcoin could reach $45,000, according to analysts at the financial conglomerate JPMorgan. The main reason behind this increase would be the rise in gold prices. According to experts, both assets tend to move in tandem and are considered by investors as alternative financial instruments.
Gold and Bitcoin: a perfect marriage?
Gold and Bitcoin are two assets that have gained popularity in recent years. Gold is considered a safe haven for investors in times of economic uncertainty, while Bitcoin is seen as an alternative to traditional fiat currencies.
JPMorgan analysts believe that the rise in gold prices could push the price of Bitcoin to new highs. According to them, if the share of Bitcoin in private investors’ portfolios equals the share of gold, the price of Bitcoin could reach $45,000.
Analysts view this figure as the upper bound, indicating the limited potential for the asset beyond the increase caused by rising mining costs. The upcoming halving in April-May 2024 will automatically double the cost of mining Bitcoin to around $40,000, which JPMorgan says will be the lower limit of the price if historical data is taken into account.
“In fact, the previous halvings in 2016 and 2020 were accompanied by a bullish trajectory for the Bitcoin price.”
Ethereum could be left behind
Analysts are also suggesting that Ethereum’s dynamics could lag in the near term. The asset may continue to experience selling pressure after the Shapella update, which allowed de-staking of coins.
However, after the update, according to data from the analytics service Glassnode, the amount of ETH staked increased, reaching 4.4 million coins since April 12.
In short, gold and Bitcoin could be a perfect match for investors looking to diversify their portfolios. While Bitcoin could hit new highs, Ethereum could fall behind anytime soon.
