JP Morgan Shares its Predictions on Crypto Markets and Bitcoin
The global investment bank has published its prediction on the 2022 outlook of crypto markets
JP Morgan Chase, one of the world’s leading investment banking companies, has published a long-term price target for Bitcoin last week, it predicts that the cryptocurrency could reach as high as $146,000 this year. However, Bitcoin is known for its wild volatility, with its price dipping just below $30,000 early last week.
A different report from the company pointed out that Ethereum may lose its defi dominance “due to scaling issues”. However, analysts also predicted that the development of crypto technology will continue to evolve, saying that energy consumption may be significantly cut when considering digital transactions. And the main beneficiary of this crypto growth would end up being Coinbase, according to JP Morgan analysts, due to projects being increasingly involved with tokens.
The JP analysis also stated that if 2021 was the year of non-fungible tokens, then 2022 will likely end up being the “year of the blockchain bridge or the year of financial tokenization”, hence the positive prediction on Coinbase’s growth.
The analyses notwithstanding, JP’s CEO continues to be skeptical about cryptocurrencies and digital assets, seeing it as a bubble that is likely to burst at some point, and indicating that it has no intrinsic value. He previously even went so far as to compare it to the 17th century tulip craze bubble of the Netherlands, which eventually popped and sent the country into a recession.
The heads of the company, while being skeptical on the assets themselves, have however shown great interest in the technology behind blockchain, establishing a new unit devoted solely to it and even investing heavily in that particular area.