Bitcoin’s Fair Value Is $170K, JPMorgan Argues in Gold-Based Model

JPMorgan analysts predict Bitcoin could reach $170,000 within the next six to 12 months based on its historical valuation relative to gold. They noted that the recent selloff in crypto markets was driven by liquidations in perpetual futures, but they believe the worst is over. Bitcoin is currently undervalued compared to gold, and the analysts see significant upside ahead. Their model suggests that Bitcoin should match two-thirds of gold's private investment base, indicating it should trade around $170,000, up from approximately $102,000 today. This projection comes after Bitcoin traded much higher in late 2024. Retail investors continue to prefer U.S. equities and gold, but with increasing volatility in gold markets, Bitcoin may become a preferred hedge against equity risk. JPMorgan also mentioned that liquidity constraints in U.S. banks are not likely to negatively impact broader markets significantly. The analysis emphasizes a mechanical approach rather than relying purely on market sentiment.

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