Strategist at JPMorgan calls for Bitcoin to continue to eat into gold

When JPMorgan starts calling for significantly higher bitcoin prices, you know we've hit the Twilight Zone.

You remember JPMorgan right?

They were the ones, well not technically them, but their boss Jamie Dimon, that called for anyone trading bitcoin at JPMorgan to be fired.

He was on the long list of main street finance guys that hated bitcoin.

Fast forward a few years and strategist from his firm think that bitcoin is going to take a bite out of gold and get to $146k in the not too distant future.

Saying:

"A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term. However, “a convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.”

It's finally made new highs against gold as well:

(Source: https://www.bloomberg.com/news/articles/2021-01-05/jpmorgan-sees-146-000-plus-bitcoin-price-as-long-term-target)

While I didn't like the part where they said the current price explosion is unsustainable, I do like that they think it's going to continue to eat into gold's market cap in the long run.

I think we can have a little bit of both.

Bitcoin is what, 5% of gold right now? I see no reason that number can't continue to climb in the near term as well as the long term.

It's not like bitcoin is 50% of gold right now.

Once bitcoin starts climbing over 10% of gold's market cap then we can start having valuation discussions, until then, up we go in my opinion!

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