BTC-to-Gold Ratio Hits New High, JPMorgan Predicts $146,000 Bitcoin Price Target for Long Term

The Bitcoin (BTC) price rally over the last weekend pushed the world’s largest cryptocurrency to a new all-time high above $34,000. In a year’s time, the BTC price has literally quadrupled driven by massive institutional interest.

Interestingly, the recent Bitcoin price rally has further extended the cryptocurrency’s dominance on Gold. As per the recent Bloomberg report, the BTC-to-Gold has hit a new record-high surpassing its previous high of 2017. The below image shows that the Bitcoin-to-Gold ratio has hit 20 levels for the first time.

Just to give an idea, the Bitcoin dominance over Gold has quadrupled in the last year from 2020. By the end of 2020, each Bitcoin was worth 5 ounces of Gold. However, as of date, each Bitcoin is worth anywhere worth close to 20 ounces of gold. Bitcoin proponent and author of stock-to-flow model PlanB shows how BTC’s dominance has continued to grow over the last decade and how it can continue further. As per PlanB, each BTC can be worth nearly 1000 ounces of gold by 2025.

JPMorgan: Bitcoin (BTC) Can Touch $146,000 In Long Term

In a note to clients, JPMorgan analyst Nikolaos Panigirtzoglou wrote that Bitcoin holds the potential to make substantial gains in the long term giving a price target of $146,000. It means that BTC will be more than 4.5x the current price with its market cap crossing $2 trillion.

However, this is a multi-year process and depends largely on the volatility of Bitcoin converging with Gold. In their note, the JPMorgan strategists wrote:

“A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term. A 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.”

Last month, JPMorgan analysts said that Bitcoin will slowly eat into Gold’s market share over the period of time. However, another banking giant Goldman Sachs has denied any such possibility saying Bitcoin poses no threat to Gold.

On Monday, January 4, Bitcoin (BTC) entered over 10% correction from its Sunday highs following a major sell-off by BTC whales at the Asian crypto exchanges. This was the steepest correction since March 2020 with BTC price losing more than $5,500 in a matter of few hours. However, BTC price recovered back above $30,000 later on Monday as the U.S. markets opened.