Can Bitcoin continue to rise to $1 million? The bulls and bears are arguing!

Bitcoin prices have surged in the past few months, breaking through $50,000 for the first time this week. Morgan Creek Digital Assets said that by the end of 2030, the price of Bitcoin could reach $500,000 and eventually $1 million. However, JPMorgan Chase warned that retail money flowing into Bitcoin could dry up as the economy reopens, which is a major risk. In JPMorgan Chase's view, unless Bitcoin price volatility eases quickly, it cannot be sustained above $50,000.
Super bulls believe Bitcoin will eventually reach $1 million and become a reserve currency
On February 17, Anthony Pompliano, co-founder and partner of cryptocurrency hedge fund Morgan Creek Digital Assets, said that the price of Bitcoin could reach $500,000 by 2030 and could eventually reach $1 million, but did not give a timetable.
“I think Bitcoin will eventually become the global reserve currency and its market value will eventually far exceed that of gold,” he said.
The agency is bullish on Bitcoin based on several factors, two of which are the scarcity of Bitcoin (the upper limit of Bitcoin is 21 million) and the decentralized nature of this technology. Decentralization means that there is no need for a central agency to verify transactions, that is, relying on all nodes to verify the authenticity of transactions.
Pompliano also pointed out that as more people enter the market, liquidity will increase, ultimately leading to a more stable price for Bitcoin. He even believes that Bitcoin will eventually become the global reserve currency for the Internet generation.
In fact, more and more participants have joined the ranks of Bitcoin. Rick Rieder, head of fixed income at BlackRock, confirmed that BlackRock is entering the field of Bitcoin investment. According to documents submitted by BlackRock to the U.S. Securities and Exchange Commission, in January 2021, BlackRock included Bitcoin futures as a potential investment for two of its funds.
JPMorgan Chase: Unless Bitcoin's volatility eases, its rise will be unsustainable. Although many institutions continue to be bullish on Bitcoin after its surge, some institutions have warned of the risks behind it and believe that its rise is unsustainable. JPMorgan Chase is one of them.
In January 2021, JPMorgan Chase released a report to its clients, setting a "theoretical" long-term target price for Bitcoin at $146,000, as Bitcoin has begun to compete with gold for its status as a safe-haven asset, so there is still room for a higher premium.
However, JPMorgan Chase also warned about the high volatility of Bitcoin, saying in a report released on February 17 that the actual price volatility of Bitcoin in three months was 87%, while that of gold was 16%. In other words, the volatility of Bitcoin is five times that of gold.
JPMorgan believes that there are still risks in Bitcoin's current rally. Although it is driven by institutional investors, retail investors are also highly involved, and believe that Bitcoin does not have enough buying to maintain high levels. Panigirtzoglou said that the biggest risk is that the liquidity impulse seen in the past few months will slow down significantly from now on.
JPMorgan Chase & Co. said the momentum that has pushed bitcoin prices to a record high above $50,000 is unsustainable unless volatility eases quickly.

(Bitcoin price daily chart)

At 10:52 on February 18, Beijing time, the price of Bitcoin was $52,224.95 per coin. (Huitong.com)