Experts sees Bitcoin as undervalued next to gold and aims for a $170,000 price tag
JP Morgan sees Bitcoin as undervalued next to gold and aims for a $170,000 price tag.
Bitcoin just dipped under $100,000. This has JP Morgan sparking fresh talks on its worth. In a report out Wednesday, the U.S. bank claims BTC sits way below gold's value. They peg a fair price at about $170,000. The report stirs up questions on Bitcoin's real worth amid wild swings and a market low on clear paths.
To sum up:
JP Morgan holds that Bitcoin looks cheap against gold. Their take stems from a volatility matchup.
The bank eyes a $170,000 goal for BTC. It factors in a straightforward bump to its market size.
This forecast uses a numbers-based method. It weighs the "relative risk" of Bitcoin versus gold.
The report drops as Bitcoin slides back under $100,000. Crypto markets face heavy doubt right now.
JP Morgan views Bitcoin as cheap beside gold: could it hit $170,000?
In a client note dated Wednesday, November 6, JP Morgan shook things up with a strong outlook. Bitcoin trades at a big discount to gold. They base this on a volatility comparison, even with a 0.85 link between the two.
The bank notes the BTC-to-gold volatility measure hit 1.8. That means Bitcoin seems 1.8 times riskier than gold. When they apply this to value comparisons, experts spot room for Bitcoin to climb a lot.
"With this ratio in play, which shows Bitcoin uses 1.8 times the risk funds of gold, its $2.1 trillion market size should rise by almost 67%. That points to a price near $170,000," the report states.
This work draws on the bank's own numbers method. It ties into how safe assets like these shift in markets. JP Morgan backs their points with key facts:
Gold surged in October. That raised its volatility for a bit, making it riskier than normal.
The BTC-gold volatility gap at 1.8 paints Bitcoin as steadier than you'd think, given gold's changes.
A risk-tuned value for BTC should match this shift. So they aim for $170,000 in 6 to 12 months.
Their model sticks to straight math. It skips hype or stories about Bitcoin. JP Morgan says this makes the guess solid.
For the bank, this setup opens doors for investors after smart, balanced picks.
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Other views pull back: some cut their goals.
Unlike JP Morgan's upbeat spin, many in the market see it differently. On the day of their report, Bitcoin broke under $100,000. It snapped a key mind barrier for the first time in four months.
Some read this drop as ongoing weakness. Galaxy Digital reacted by trimming its end-of-year BTC targets. They cut from $185,000 down to $120,000.
Galaxy points to steady economic strains. Things like trade fights and tariff hikes play in. Plus, the October 10 plunge ranks as crypto's biggest one-day wipeout ever.
One stark number adds worry: Galaxy says whales dumped nearly 400,000 BTC into markets last month. That ramped up sell-offs. Big players are shifting holdings to rival spots or ideas.
"Bitcoin's in a fresh stage, what we term maturity," says Alex Thorn, Galaxy's research lead. He thinks ETFs soak up more cash flow. This curbs how fast prices rise.
The split between JP Morgan and spots like Galaxy shows crypto's tangled state. Some spot long-term chances built in. Others push caution from short-term signs. Investors must balance these stories: one of a bargain asset set to bounce, the other of a market easing into slower gains. Either way, these clashes prove Bitcoin's price draws real finance tools now. It's no longer just hype or a bubble.