Home » Bitcoin » Ark Invest and JPMorgan expect Bitcoin to hit $130K-$470K

Ark Invest and JPMorgan expect Bitcoin to hit $130K-$470K

Top funds in the U.S. expect Bitcoin to hit anywhere between $130K to half a million in the long term.

JPMorgan expects Bitcoin (BTC) to reach $130,000, while Ark Invest anticipates the market valuation of BTC to surpass that of gold.

The optimistic macro prediction from both funds revolves around the scarcity of Bitcoin, which has buoyed its popularity as a safe-haven asset.

Why are both high-profile funds so optimistic in Bitcoin?

As Cointelegraph previously reported, the outlook of the U.S. dollar index is on the decline.

The fear of inflation and the increasing liquidity in the financial markets is causing reserve currencies, like the dollar, to depreciate.

Ark Invest, as an example, sees Bitcoin nearing $500,000 in the future considering that the fund expects it to surpass gold by market capitalization. Currently, the market cap of Bitcoin is roughly 10% of gold. 

The Winklevoss twins, who own over a billion dollars worth of cryptocurrencies like Bitcoin, outlined a similar thesis in the past.

In the new popular essay entitled “The Case for $500K Bitcoin,” Tyler Winklevoss, the co-founder of Gemini, said:

Meanwhile, JPMorgan has set a more conservative target at $130,000, which is more realistic as a shorter-term target for Bitcoin, as it would put BTC’s valuation at around $2.73 trillion.

Holger Zschaepitz, a market analyst at Welt, noted:

However, Zschaepitz noted that the long-term risk-adjusted price of Bitcoin could fall in the future, which is not accurately predictable because it is difficult to forecast the trend of volatility over time.

What do traders think

According to a pseudonymous trader known as Bitcoin Jack, the SOPR indicator forecasts some profit-taking could occur in the short term.

The SOPR indicator gauges how many BTC in the market are in profit and thus are vulnerable to a sell-off. The trader said:

Fellow cryptocurrency trader Scott Melker emphasized that Bitcoin has performed well against the S&P 500 and the U.S. stock market, which still makes it favorable as a store of value. 

Melker wrote:

As long as Bitcoin continues to outperform the U.S. stock market, from a risk standpoint, it would remain compelling for both retail traders and high-net-worth investors in the near to medium term.

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