Troy ounces of gold worth $2,000 are equivalent to bitcoins worth $45,000 because the two assets tend to move in tandem and are seen as substitutes. JPMorgan analysts came to that conclusion, The Block writes.
Experts assume that the first cryptocurrency will have the same risk-adjusted weight in private investors’ portfolios as major precious metals.
The published valuation of $45,000 is the upper limit of possible upside, suggesting “limited potential”.
JPMorgan notes that the upcoming halving in April-May 2024 will lead to a rise in Crypto gold prices to $40,000.
“Historically, production costs have been the effective lower bound on costs,” the strategist explained.
In the short term, experts expect some “lag” in the dynamic growth of the price of Ethereum from the first cryptocurrency. They pointed to the possibility of selling pressure after Shapella until mid-year.
Overall, JPMorgan is cautious on Crypto assets due to concerns about industry-friendly banks, regulatory pressure, and the fallout from the FTX debacle.
Recall that the Kaiko analyst drew attention to the weakening of the correlation between Bitcoin and Ethereum.
Subscribe to ForkLog on social networks
Found an error in the text? Select it and press CTRL+ENTER
ForkLog Newsletter: Keeping an Eye on the Pulse of the Bitcoin Industry
Information source: compiled from FORKLOG by 0x Information.Copyright belongs to the author Петр Иванов, without permission, may not be reproduced