While the world situation was flaky, 2020 ended up becoming Bitcoin’s year. Despite fumbling in March, it has since recovered to reach new unprecedented all-time-highs ($37,152 at press time).
Renewed Confidence in Bitcoin
With renewed confidence in Bitcoin, we are seeing mass-media picking up on the price action by writing, and streaming about BTC across all the major news outlets yet again. In volumes that we have not seen since BTC reached $20,000 in 2017. A price that has not yet even been tested as support.
Google trend confirms that too. As interest in Bitcoin has been picking up rapidly recently. The graph clearly indicates that there is still room for Bitcoin to reach the same interest levels we saw during its last massive parabolic rise. This may indicate that there is still room for growth for bitcoin, before an inevitable correction.
Something which JPMorgan has been warning about since lower prices in December. Indeed we did see a price correction on January 4th as the price dropped 19% in a matter of hours.
Bitcoin Price Action Controlled by Large Institutional Investors
Most of the price action of Bitcoin was supported by a massive buy-up of BTC by institutional investors acquiring unfathomable quantities of Bitcoin. In December alone, Grayscale bought 3 times the amount of Bitcoin that was mined, far exceeding the produced supply (72,950 BTC) Thereby significantly controlling and skewing the demand and supply in their favor. Technically, the longer they are able to continue this trend, the longer they are can manage and lead the bitcoin bull run too. The more scarce they can make Bitcoin, the faster it will grow and the more stable the price action may eventually become.
JPMorgan Forecasts Bitcoin to reach $146,000
Bloomberg recently reported that JPMorgan has a price target of $146,000 per BTC. As they see Bitcoin’s potential to equal to the private sector investment of gold. JPMorgan noted, however, that this is a “multiyear process”, and “thus an unsustainable price target for this  year.”, citing increased interest from millennials to choose Bitcoin over Gold.
Bitcoin Marketcap to Equal Gold’s
JPMorgan is not alone in setting high price targets for Bitcoin, with several other investment firms and traders thinking around the same lines. Skybridge see Bitcoin hitting $100,000 by the end of 2021, while potentially long term seeing a price tag of $535,000 per coin. This would equal the bitcoin market cap to that of gold.
Gold currently has a market cap of approximately $10 trillion, while the entire cryptocurrency market cap just reached $1 trillion for the first time in history. Bitcoin’s market cap is just under $700 million currently and therefore has potential for growth if it is to reach the same valuation as gold’s entire market.
Right now it is still anyone’s guess as to what will happen to Bitcoin’s price in the near future, but long term many agree that Bitcoin’s prospects are looking very promising.