As soon as Bitcoin stood at $50, 000 this week, someone shouted a sky-high price target of 1 million.

Anthony Pompliano, co-founder of Morgan Creek digital assets company (Morgan Creek Digital Assets), expected on WednesdayBy the end of 2030, the price of Bitcoin could reach $500000, eventually reach $1 million, and become the world's reserve currency with a market capitalization that far exceeds that of gold.

Pompliano thinksThe scarcity of Bitcoin (the supply limit is 21 million) and its decentralized nature are two important factors in Bitcoin's popularity.The so-called decentralization means that users can transfer a large amount of value to other network participants almost instantly without any central administrator to verify the transaction, with little management trouble.

At the same time, the participation of institutions and large companies is further fuelling the rise in currency prices.After Tesla announced a $1.5 billion allocation of bitcoin and plans to accept cryptocurrency as a method of payment, cryptocurrency assets such as bitcoin seem to be on the fast track of institutional acceptance.

On Thursday, Bank of New York Mellon, the oldest bank in the United States and a major custodian provider, announced that it would hold, transfer and issue bitcoin and other cryptocurrencies for institutional clients later this year, with the ultimate plan to treat digital currencies in the same way as other assets such as government bonds and technology stocks. Some analysts say this is the first large custodian bank to publish a road map that treats digital currency as an equal status of other traditional assets.

Global payments giant MasterCard also announced last Wednesday that it plans to support certain digital currencies on its network later this year. In addition, asset management giant BlackRock and payment giants Square and PayPal have recently begun to support digital currencies.

CNBC quoted Nikolaos Panigirtzoglou, global market strategist at JPMorgan Chase, as sayingAccording to this momentum, Bitcoin is competing with traditional gold as a form of digital gold.

In a report in January, Panigirtzoglou set a "theoretical" long-term target price for Bitcoin at $146000. According to its statistics, the private sector currently holds gold worth about $2.7 trillion for investment purposes alone, and the corresponding price of bitcoin should be $146000 to reach that level.

But behind the sharp rise in currency pricesOthers believe that the current Bitcoin rally is unsustainable and that the risks cannot be ignored. JPMorgan Chase recently warned of high volatility based on bitcoin.The bank said in a report on Wednesday that the real price volatility of bitcoin in three months was 87%, compared with 16% for gold. In other words, Bitcoin is five times more volatile than gold.

JPMorgan believes that Bitcoin's current rally is still risky, although it is driven by institutional investors, retail investor participation is also high, and believes that there is not enough buying of Bitcoin to maintain its high level. One of the biggest risks, says Panigirtzoglou, is that the mobile impulses seen in the past few months are slowing significantly from now on.

JPMorgan said that unless Bitcoin price volatility eased quickly, the momentum to push its price above a record $50,000 was not expected to be sustainable.