As the digital revolution persistsย to reshape the financial landscape, Bitcoinย (BTC) has resurfaced as a formidable contender to challenge the age-old dominance of gold as a store of value and hedge against inflation.
This being stated, strategists at JPMorgan said goldโs price impliesย that Bitcoinย (BTC) should be trading substantially higher than its current price level, assuming that numerous investors see the two assets as interchangeable.ย
Reportsย by the analysts, given the bullionโs current price of just below $2,000 an ounce, the worldโs leading digitalย currency should be trading somewhere around $45,000, they wrote in a note to clients on Wednesday, May 24. Bitcoinย (BTC) asย ofย now trades at $26,512, nearly 70 percent lower than the level strategists say it should be.ย
Nonetheless, the premise that both serve as stores of value canย potentially fail to convince some, given that Bitcoinย (BTC) has been around for only 14 years, while gold has been playing that role for centuries.
For that reason, the bulkย of institutional investors have stuck with gold as their go-to safe-haven investment, while Bitcoinย (BTC) has been more appealingย to retail investors.ย
Bitcoinย (BTC) halving could likewise propel Bitcoin price
JPMorgan strategists likewise reflected on another factor that could potentially drive BTCโs price in the future โ the halving event.ย
Bitcoinย (BTC) halving refers to a programmed event that occurs approximately every four years, reducing the price at which new Bitcoins are created by half, leading to a decreased supply of new coins entering the market and potentially impacting itsย value. The number of cryptoย tokens miners receive for processing transactions and keeping the blockchainย tech secure likewise gets halved.ย
Theย following halving event, which is expected to take place next April or May, would double theย expense of mining 1 Bitcoin to around $40,000.ย
Inย theย meantime, the bankโs strategists were not positiveย tendency on BTCโs price in the short term, citing the ongoing regulatory backlash against digital assets.ย
โThe headwinds from the Unitedย States regulatory crackdown, the unsettling of banking networks for the cryptocurrency ecologicalย system and the reverberations from last yearโs FTXย Tradingย Ltd collapse are likely to constrain any potential upside.โ
โ the analysts wrote.
Bitcoinย (BTC) price analysis
Atย theย timeย ofย publication, BTCโs price stood at $26,514, up around 1 percent in the past 24 hours. Inย theย previous 30ย days, the digitalย currency dropped 6.6%.
On the other hand, its year-to-date profits remain strong, at 60%, marking a wholeย lotย of recovery following the 2022 price crash.
Disclaimer:ย The content on this site should not be considered financing advice. Investing is speculative. Andย once investing, your financialย resources is at risk.
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