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.
BTC/USD 1-day price chart (Binance). Source: TradingView.comWhy 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.
BREAKING: Ark Invest believes #Bitcoin’s market capitalization will one day “comfortably eclipse” that of gold, and exceed $10 trillion
— Market Meditations (@MrktMeditations) April 5, 2021
The Winklevoss twins, who own over a billion dollars worth of cryptocurrencies