Bitcoin extended its winning streak on Wednesday to hit an all-time high of over $35,000.
The price of the digital currency rose crossed the $20,000 mark on December 17 and skyrocketed by more than 300% in the last one year.
Bitcoin’s market cap is now well over $600 Billion mainly driven by growing interest among institutional investors as well as new retail investors who are betting on the potential of the digital currency to go mainstream.
Bitcoin is up by 82% on month on month basis and 22% over the last one week.
Earlier on Monday, Bitcoin plunged 12% touching new record of over $34,000 over the weekend. Monday’s drop marked its largest one-day loss since September 3, 2020.
JP Morgan Bitcoin Target Price
According to Bloomberg, analysts at JPMorgan Chase & Co estimate that Bitcoin has the potential to reach $146,000 in the long term as it competes with gold as an asset class.
“A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term. However, convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.” BBG quotes a note by JP Morgan strategist Nikolaos Panigirtzoglou.