The surge in Bitcoin price over the past months has triggered Wall Street analysts to increase their price target. At the beginning of the year, JPMorgan analyst Nikolaos Panigirtzoglou said BTC could reach $146,000.

Strategists at investment banking company JPMorgan Chase & Co (NYSE: JPM), Federico Manicardi and John Normand, referred to Bitcoin as the “least reliable hedge during periods of acute market stress.” According to a memo published on the 21st of January, JPMorgan strategists questioned Bitcoin’s ability as a reliable investment hedge.JPMorgan Says Bitcoin Mainstream Adoption Is Affecting Diversification BenefitsAt the time JPMorgan strategist released the memo, Forbes said in a report that Bitcoin had plunged significantly and lost about $180 million in its market capitalization. As stated in the report, the strategists said:

“Mainstreaming is reducing diversification benefits and leading to underperformance during a crisis.”

With a market cap of about $590 billion, Bitcoin is down 8.22% to $31,781 despite reaching nearly $42,000 earlier this month.The strategist added:

“The mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage.”

Before now, other JPMorgan strategists said Bitcoin is a risk asset and not a safe haven as many view the digital asset. According to JPMorgan’s Global Quantitative and Derivatives Strategy team, Bitcoin is “likely more of a reflection of a need for an ‘alternative’ currency rather than a need for a ‘safe’ asset or ‘hedge.’The surge in Bitcoin price over the past months has triggered Wall Street analysts to increase their price target. At the beginning of the year, JPMorgan analyst Nikolaos Panigirtzoglou said BTC could reach $146,000.Bitcoin HighsSince the 2017 crash, the crypto market was dormant until last year when investors began to view cryptocurrencies, especially Bitcoin, as a safe haven. In 2020, the crypto space received new investors and saw more commitments from existing ones. The interest growth in cryptocurrencies is due to the global economic meltdown caused by the unprecedented coronavirus pandemic.Bitcoin has been recording new highs since October when PayPal announced that its users can now make transactions using the king coin. BTC reached a three-year high of over $19,000 on the 24th of November and climbed to an all-time high of $19,850.11 on the 30th of the same month. After that, BTC topped new highs of $20,600 on the 16th of December and moved to $23,600 on the 17th. As of the 27th of December, the top coin was at $23,421. Bitcoin also traded at over $28,000 on the 27th of the same month.Recording additional gains, Bitcoin reached another high of more than $34.800 on the 3rd of January 2021. On the 7th of January, Bitcoin crossed $40,000 for the first time in history. On the 8th, Bitcoin traded at almost $42,000 before declining.In the memo, Normand and Manicardi added:

“Whether cryptocurrencies are judged eventually as a financial innovation or a speculative bubble, Bitcoin has already achieved the fastest-ever price appreciation of any must-have asset.”

Apart from Bitcoin, altcoins like ETH, XRP, and Cardano (ADA) have also declined. ETH has plunged 12.89% to $1,146.61, XRP is down 11.13% to $0.2641. Also, Cardano (ADA) has dropped by 13.12% to $0.3169.

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