Financial markets have always been volatile, but a recent statement by JPMorgan Chase has set off a huge wave in the market. It is said that the rise in gold prices may indicate that Bitcoin is expected to break through the $45,000 mark. This news is like a bombshell, triggering widespread attention and heated discussions. What kind of logical connection has created such a close relationship between gold prices and Bitcoin?

Rising gold prices are often seen as a protective behavior of safe-haven assets, and investors have transferred funds to traditional assets such as gold. In the field of digital currency, Bitcoin has always been regarded as a popular choice for risk aversion and speculation. When gold prices rise, investors' uncertainty about traditional markets increases, and they may transfer funds to emerging assets such as Bitcoin to seek higher returns. This psychological expectation and behavior has led to an increase in Bitcoin prices, which may push Bitcoin prices above the $45,000 mark.

In addition, the rise in gold prices may also reflect the uncertainty of the global economic situation. In recent years, factors such as intensified global trade tensions, increased geopolitical risks, and slowing economic growth have made investors more inclined to seek safe-haven assets. As a decentralized and global digital currency, Bitcoin has been favored by more and more investors. Therefore, the rise in gold prices may indicate challenges facing the global economy and provide an opportunity for the development of digital assets such as Bitcoin.

On the other hand, the correlation between the rise in gold prices and the trend of Bitcoin prices may also stem from the influence of market psychology. Investors are often affected by market sentiment and expectations. The rise in gold prices may lead to investors' optimism about digital currencies such as Bitcoin, thereby driving up their prices. The transmission effect of this psychological expectation has formed a seemingly mysterious but actually reasonable connection between gold prices and Bitcoin prices.

In such a financial market full of variables and challenges, investors and observers need to remain vigilant and have keen insight. JPMorgan's remarks may be just a stone that stirs up a thousand waves in the financial market, but the deep logic behind it is worth our in-depth thinking. Whether the rise in gold prices really indicates that Bitcoin will break through the $45,000 mark, this question may only be answered by time. However, as investors and observers, we need to remain vigilant at all times, respond prudently to market fluctuations, seize investment opportunities, and realize wealth appreciation. With the soaring gold price, Bitcoin may set off a new round of investment boom. Let us wait and see and witness the future development of the market.

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 Rising gold prices affect Bitcoin prices

Coin Circle (120Btc.com) News: According to The
Block, JPMorgan analysts said that the price of gold is close to $2,000 per ounce, which means that Bitcoin could reach $45,000. Investors generally view gold and Bitcoin as alternative investments, and the two assets usually show similar trends.

With gold prices exceeding $2,000, the current value of gold held by private investors for investment is about $3 trillion, JPMorgan strategists wrote in a report on Wednesday. In this case, assuming that Bitcoin is equal to gold in the portfolio of private investors, the price of Bitcoin should reach $45,000.

However, JPMorgan believes that $45,000 is the upper limit of Bitcoin prices, suggesting that the growth of the asset is limited by the doubling of mining or production costs. JPMorgan expects that the upcoming Bitcoin halving event in April or May 2024 will cause the production cost of Bitcoin to double, pushing the price to $40,000. Past halving events show that Bitcoin prices have accelerated since then.

JPMorgan's view on Bitcoin and Ethereum

At press time, Bitcoin was trading around the 26K level and Ethereum was around $1,800, according to The
Block's data dashboard. JPMorgan said Ethereum continued to face selling pressure after the Shanghai upgrade and is expected to underperform Bitcoin in the short term.

JPMorgan remains cautious about digital assets as the U.S. regulatory crackdown, disruptions to the cryptocurrency banking network, and the fallout from the collapse of the FTX exchange may limit the potential gains of these assets. JPMorgan expects a 25% return on Bitcoin in the next 12 months and will keep an eye on the Bitcoin halving event expected to occur in 2024.