Bitcoin (BTC) could reach $100K this year, says JPMorgan

Bitcoin’s rally, which started in late 2020, continues unabated in 2021. After breaching its previous 2017 all-time high, BTC soared higher and even traded past $34,000 on January 3.

While the crypto slid back slightly lower and is trading currently above $31,000 as of writing, cryptocurrency investors remain bullish on BTC. In fact, JPMorgan predicts that Bitcoin’s price could soar to six-digit figures in 2021.

Bitcoin’s spectacular 300 percent surge last year could be repeated this year, according to JPMorgan. In a note on Monday, the banking giant expects that crypto to soar as high as $100,000 but also warned that such a feat might not be sustainable, Business Insider reported.

“While we cannot exclude the possibility that the current speculative mania will propagate further, pushing the bitcoin price up towards the consensus region of between $50k - $100k, we believe that such price levels would prove unsustainable,” JPMorgan said.

Investors have recently been comparing Bitcoin to gold with some institutions already swapping their gold bullion for the crypto. However, the bank believes that BTC’s volatility might hinder its widespread adoption among institutions.

“It is thus unrealistic to expect that the allocations to bitcoin by institutional investors will match those of gold without a convergence in volatilities,” JPMorgan added. “A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is in our mind a multi-year process.”

JPMorgan isn’t the only one predicting Bitcoin’s price to rise to $100,000 this year. In fact, Fundstrat's Tom Lee believes that BTC has the potential to quadruple in 2021.

While BTC performed spectacularly well last year, Lee expects the crypto to perform even better this year. “2021 is going to be a lot like 2017 which means bitcoin should do even better in 2021 than it did in 2020, so something above 300%," Lee told CNBC on Wednesday.

Considering that the crypto is currently trading around $31,000, this could mean that Bitcoin has the potential to reach $124,000 this year. This makes Lee’s prediction around twenty percent higher than JPMorgan’s $100,000 prediction for 2021.

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