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JPMorgan Sees BTC Hitting $170K
In a Wednesday report, JPMorgan strategist Nikolaos Panigirtzoglou and his crew famous that the cryptocurrency market has seen a roughly 20% correction since reaching its latest report highs, with the sharpest pullback happening on October 10, which resulted in report liquidations. This was adopted by the Nov. 3 downturn as investor confidence was additional shaken after the $120 million Balancer exploit.
Regardless of these selloffs, JPMorgan believes that the deleveraging part in crypto derivatives, notably Bitcoin perpetual futures, is basically over.
“The message from latest stabilization is that deleveraging in perpetual futures is probably going behind us,” the analysts wrote.
The financial institution’s worth projection is predicated on its statement that the latest surge in gold volatility has made BTC extra enticing to traders on a risk-adjusted foundation. Bitcoin has lengthy been touted as “digital gold,” however JPMorgan’s framework suggests it’s presently buying and selling nicely beneath the place it ought to be when adjusted for danger.
 
The analysts concluded that Bitcoin presently consumes roughly 1.8 occasions extra danger capital than gold, and given BTC’s present market cap of round $2 trillion, the world’s first and largest cryptocurrency would wish to rocket by roughly 67% — “implying a theoritical Bitcoin worth of near $170,000” — to match the $6.2 trillion in personal funding in gold by way of ETFs, bars and cash.
Bitcoin is presently buying and selling at round $101,600, which means that its round $68,000 beneath JPMorgan’s gold-based volatility-adjusted honest worth benchmark, the financial institution said, including that this “mechanical train thus implies vital upside for Bitcoin over the following 6-12 months.”
