Bitcoin price could reach $45,000, says JPMorgan

May 27, 2023

JPMorgan analysts link the $2,000 gold price to a potential $45,000 bitcoin price due to their correlated movement and investor preference.

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The current value of gold held for investment outside central banks is around $3 trillion, implying a $45,000 bitcoin price when considering its equivalence in private portfolios.

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JPMorgan views the $45,000 bitcoin price as an upper limit, indicating limited growth beyond increased mining costs.

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The upcoming Bitcoin halving in April or May 2024 is expected to double production costs to approximately $40,000, as per JPMorgan.

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JPMorgan highlights that historical data shows bitcoin's production cost acts as a reliable lower boundary, with bullish trends following previous halving events in 2016 and 2020.

The Bitcoin halving occurs every four years, reducing block mining rewards and maintaining scarcity.

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JPMorgan predicts a 25% bitcoin return over the next 12 months, considering the expected halving in 2024.

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