Bitcoin (BTC) may be surging to never-seen-before heights as the week draws to a close, with prices surpassing the USD 53,000 mark for the first time today, but not everyone wants to sing its praises – nor those of altcoins – as JPMorgan’s analysts poured some water on the crypto fire.
The company has unveiled a new report that makes considerable mention of BTC prices. Economic and crypto commentator Alex Krüger shared the report’s executive summary on Twitter, and the matter was also covered by Reuters.
And it looks like BTC is firmly on the agenda at JPMorgan, with an executive last week claiming that the firm was “open-minded about bitcoin.”
But the latest report is far less complimentary, dismissing the token’s rise as a “sideshow,” and calling it and altcoins a “poor hedge.”
Its authors wrote,
“In the long term, we estimate that theoretically bitcoin prices would need to rise to USD 146k for the market cap to match the total private sector investment in gold via [exchange-traded funds] or bars and coins.”
And while the firm’s analysts feel that the companies and private individuals who are turning to BTC as a hedge are barking up the wrong tree, they admit that the token has become “mainstream,” writing,
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