JPMorgan Says Bitcoin Could Reach $266,000 ‘Long Term’ as It Looks More Attractive Than Gold

Investment banking giant JPMorgan Chase has issued a major long-term price forecast for Bitcoin (BTC), suggesting the cryptocurrency could eventually hit $266,000. The bullish projection is underpinned by the view that Bitcoin is increasingly displacing gold as a primary investment asset and store of value.

According to strategists at the bank, the $266,000 target is derived from a theoretical convergence in market capitalization between Bitcoin and private sector gold holdings (excluding gold held by central banks). For this price target to materialize, Bitcoin’s perceived utility as a ‘digital gold’ must fully equalize with that of the physical commodity.

The rationale behind Bitcoin’s growing appeal centers on its superior characteristics for younger, tech-savvy investors and its fixed scarcity. While gold has traditionally served as the ultimate hedge against inflation and currency debasement, Bitcoin’s ease of transfer and decentralized nature are drawing significant institutional interest.

However, JPMorgan emphasized that the ‘long term’ nature of the forecast is crucial. Achieving the six-figure valuation depends heavily on a sustained reduction in Bitcoin’s notorious volatility. Strategists argue that the volatility gap between BTC and gold must narrow significantly to justify the movement of large pools of capital away from the traditional safe-haven asset and into the cryptocurrency space. If volatility trends downward, institutional portfolios are expected to further increase their allocation to the digital asset, solidifying its status as a viable alternative to precious metals.

Source: JPMorgan says bitcoin could reach $266,000 ‘long term’ as it looks more attractive than gold