Bitcoin Price (BTC) Analysis: 'Debasement Trade' to Boost Price, Says JPMorgan

JPMorgan predicts that bitcoin's value could rise to around $165,000, reflecting a potential increase of about 40% from its current price of approximately $119,000. This projection is based on a volatility-adjusted analysis relative to gold. The bank attributes this anticipated surge to a growing trend among retail investors engaging in the 'debasement trade,' which involves purchasing assets like bitcoin and gold to hedge against fiat currency depreciation. Cumulative flows into bitcoin and gold exchange-traded funds (ETFs) have seen a significant uptick, particularly as concerns over inflation and fiscal policies mount ahead of the U.S. presidential election. Though institutional investors have also entered the market mainly through futures, their buying momentum has lagged behind that of retail investors. As the price of gold rises, bitcoin's relative attractiveness is enhanced, with JPMorgan viewing its current pricing as undervalued compared to gold, reinforcing the bullish outlook for bitcoin in the coming months.

Source 🔗