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

JPMorgan analysts predict Bitcoin (BTC) could reach $170,000 within the next six to twelve months based on its historical valuation relative to gold. The report states that recent selloffs in the cryptocurrency market were primarily due to liquidations in perpetual futures, but suggests that most of the deleveraging has now concluded. With Bitcoin currently undervalued compared to gold, the bank sees significant upside potential for the cryptocurrency. Their model posits that Bitcoin's market cap should increase by two-thirds, adjusting for risk capital metrics, to match gold’s roughly $6.2 trillion investment base. As of now, Bitcoin is approximately $68,000 below this valuation. The report emphasizes that while retail investors continue to invest in U.S. equities and gold, Bitcoin's appeal as a hedge against equity risk may grow. Moreover, JPMorgan reassures that liquidity constraints within U.S. banks will not adversely affect broader markets, highlighting ongoing growth in non-bank liquidity that supports crypto and equity assets.

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