JPMorgan has predicted that Bitcoin will hit $130,000 while asset management company Ark expects the top crypto asset to go much higher, reaching $470,000. Citing Ark Invest, Cointelegraph said that the fund manager is expecting BTC’s market cap to exceed that of gold. Already, Bitcoin has been attracting more investors than gold, as traders view the king coin as a hedge over inflation.
At press time, Bitcoin is up 1.67% $59,467.83. The lead cryptocurrency has a market capitalization of about $1.1 trillion, representing over 10% of gold’s market value.
One of the factors fueling the bullish predictions is Bitcoin’s scarcity, caused by its increased demand.
Cointelegraph noted in an earlier report that the fear of inflation had caused a decline in the US dollar.
Ark Invest’s prediction reiterates Tyler Winklevoss’ statement in an essay titled, “The Case for $550K Bitcoin.” Winklevoss, the co-founder of Gemini, said:
“Today, the market capitalization of above-ground gold is conservatively $9 trillion. If we are right about using a gold framework to value bitcoin, and bitcoin continues on this path, then the bull case scenario for bitcoin is that it is undervalued by a multitude of 45.”
Winklevoss further added that a 45x increase from Bitcoin’s current price would mean that each coin sells for $500,000.
Image Credits: Pixabay
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