- Bitcoin has a hard time being included in investment portfolios like gold because it is very risky and its value changes a lot.
- JPMorgan predicts that the price of Bitcoin could reach $45,000, which is lower than its current value.
- The market for Bitcoin ETFs is expected to be worth about $62 billion, and $9 billion has already been invested.
In a new study, JPMorgan pointed out the difficulties Bitcoin is facing in being as popular as gold for investors. Although comparing the two assets, Bitcoin’s natural risk and unpredictable changes make it difficult to invest in.
Bitcoin’s possible total value and estimates for its price in the future
According to JPMorgan, for Bitcoin to be as popular as gold, its value would need to double to $3. 3 trillion However, the report warns against this idea, saying that Bitcoin is much more risky and unstable than gold, about 3. 7
The report also says that if Bitcoin was as popular as gold for investing, the amount of money invested in Bitcoin would go down to $0. 9 trillion and the price would be around $45,000. This number is much lower than Bitcoin’s current price, at about $67,400.
JPMorgan says it’s important to consider risk and volatility when deciding how to invest in Bitcoin compared to gold. Although Bitcoin is becoming more popular, its constantly changing prices make it less appealing to regular investors who want their investments to be stable.
The possibility of Bitcoin ETF market growth
JPMorgan’s report looks at how big the market for Bitcoin exchange-traded funds (ETFs) could be, and estimates it to be about $62 billion based on how much the value of Bitcoin changes compared to gold. Spot Bitcoin ETFs have received about $9 billion in new money. However, some of this money might just be moving from other investments instead of being brand new.
The bank believes that the spot Bitcoin ETF market will grow in the next two to three years because more investors want to invest in cryptocurrency in a safer and more regulated way.
Although Bitcoin is becoming more widely used and accepted, it still faces difficulties in being as popular as gold in investment portfolios. Some people see the chance to make a lot of money with it, but others are worried about how risky it is and the rules that they don’t understand.
Warning: This information is not advice on what to buy or sell in trading.
