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Investing.com – The price rebounded on Sunday, thanks to the announcement of a US debt ceiling agreement, and the cryptocurrency could still rise much further, according to a note from JP Morgan published last week.
The bank there has in fact estimated that the current price of nearly $2,000 an ounce would imply a theoretical price of $45,000, as the two assets tend to move in tandem.
“If the price of gold rises above $2,000, the value of gold held for investment purposes outside of central banks is currently valued at around $3 trillion. This implies a price of $45,000. dollars for bitcoin on the assumption that bitcoin equals gold in the portfolios of private investors in terms of risk capital or adjusted volume,” the bank’s analysts wrote.
It is important to clarify, however, that JPMorgan (NYSE:) views bitcoin price at $45,000 as an upper boundary, indicating limited potential for the asset beyond.
The bank also addressed the issue of the next BTC halving, i.e. the halving of mining rewards that occurs every 4 years, with the next scheduled to take place in April or May 2024.
The bank has indeed pointed out that this halving will in fact increase the cost of production of each bitcoin. However, she points out that the cost of mining one BTC “has historically acted as an effective lower bound for the price of cryptocurrency.
“Indeed, the previous halving events of 2016 and 2020 were accompanied by a bullish trajectory for bitcoin prices that accelerated after the halving event,” the bank recalled.
Indeed, halvings can have a bullish impact on Bitcoin in two different ways: By reducing supply growth, since mining rewards are paid in “newly issued” BTC, and by raising the break-even point for miners. of Bitcoin, who do not wish to sell mined Bitcoin below their production cost.