Bitcoin could be about to experience a bumpy future if industry predictions are anything to go by, as Wall Street giant JPMorgan has issued a shocking $28 trillion gold challenge in the next year that could shake the economy to the core.
There has been an increased emphasis placed on Bitcoin and the wider cryptocurrency world over the course of the last year, which is primarily a result of Donald Trump's success in the last US election.
Trump, alongside a number of key figures close to him, has allocated an increased legitimacy to cryptocurrency as a digital currency equivalent or perhaps even in opposition to the US dollar, and the industry has gone along with him.
Not only has he floated the idea of a federal crypto reserve, but he has also created the world's first regulated form of crypto in the newly established 'stablecoin', of which his own family's business arm leads the way with World Liberty Financial.
Advert
Now, following Elon Musk's call that Bitcoin could be the only way to save the United States from impending bankruptcy amid a debt crisis, one major banking institution has made a similar prediction.
As reported by Forbes, JPMorgan has suggested that Bitcoin will soon challenge the current $28.3 trillion market capitalization of gold, despite only sitting at around $1.9 trillion with recent value hikes across the last 12 months.
This is due to what these investment experts predict to be the new 'price bottom' of Bitcoin, which works out to be around $94,000, meaning that it's not likely to drop below this point even with market reactions.
"The Bitcoin production cost has empirically acted as the flood for Bitcoin," explained JPMorgan analysts in a new note seen by Coindesk, adding that "a $94,000 production cost implies very limited downside to the current Bitcoin price."
The crypto coin is currently sitting at around $95,400 despite rising all the way up to $125,000 last month, alongside a recent spike after Trump announced a new round of stimulus checks that some analysts suggested would cause the price to skyrocket again.
The analysts from JPMorgan also believe that the lower Bitcoin-to-gold volatility ratio could be "implying a theoretical Bitcoin price of close to $170,000" at some point in the next year, indicating that the best is yet to come for the most popular crypto coin.
Zhong Yang Chan, head of research at CoinGecko, outlined to Forbes that "while price action may be bearish for now, overall it has been a very good year for crypto in terms of regulation and institutional adoption," adding that that high price target in the next six-to-12 months is "still intact."