JPMorgan: Bitcoin Could Reach $126k, Gold Rivalry Strengthens

TLDR

• JPMorgan analysts believe Bitcoin is undervalued compared to gold and could rise by 13% to reach $126,000.
• The volatility of Bitcoin has dropped from 60% to 30% over the past six months.
• Institutional demand for Bitcoin has increased, with corporate treasuries now holding about 6% of Bitcoin’s total supply.
• Bitcoin’s mainstream adoption is expected to grow, contributing to a potential future price increase.
• U.S. spot Bitcoin ETFs have become the fastest-growing ETFs, surpassing $100 billion in assets in under a year.

JPMorgan analysts have stated that Bitcoin (BTC) is undervalued when compared to gold. They believe the cryptocurrency could rise by 13%, reaching a target price of $126,000. This projection comes amid growing adoption by institutional investors and declining volatility in Bitcoin’s market.

Bitcoin’s Price May Rise by 13%: JPMorgan’s Outlook

JPMorgan’s analysts, led by Nikolaos Panigirtzoglou, assert that Bitcoin is undervalued relative to gold. They noted that Bitcoin’s price could reach $126,000, which is a 13% increase from its current level. This target would match gold’s $5 trillion in private investment.

The report also highlighted Bitcoin’s declining volatility, which has dropped from 60% to 30% over the past six months. According to JPMorgan, Bitcoin is now twice as volatile as gold, marking the smallest gap ever recorded. As Bitcoin stabilizes, analysts expect mainstream adoption to grow, positioning it for a future price increase.

JPMorgan’s analysts pointed to the growing institutional demand for Bitcoin. They stated that corporate treasuries now hold around 6% of Bitcoin’s total supply. This increased demand could further support Bitcoin’s price in the near future.

JPMorgan Notes Rapid Growth of Bitcoin ETFs

JPMorgan’s report reflects the rising adoption of Bitcoin among institutional investors. Notable entities like Michael Saylor’s Strategy have accumulated 3.68 million Bitcoins, contributing to a substantial portion of the total supply. This growing corporate interest signals a shift toward Bitcoin as a mainstream investment asset.

The largest U.S. bank also observed that U.S. spot Bitcoin ETFs have become the fastest-growing ETFs. These ETFs surpassed $100 billion in net asset value in under a year, with BlackRock’s IBIT leading the way. At present, U.S. spot Bitcoin ETFs hold approximately $144.5 billion in total assets.

In addition, nations like the United States and El Salvador have been adopting Bitcoin through strategic reserves. Under President Trump, the U.S. has taken steps to promote Bitcoin and blockchain technology adoption, strengthening Bitcoin’s case as a legitimate financial asset.

Bitcoin’s Market Outlook and Future Price Action

Bitcoin’s price briefly surged by 2.3% on Thursday, reaching a high of $113,479. However, it retraced by about 1% to trade at $112,272 shortly after. Despite this slight correction, analysts remain confident in Bitcoin’s future price prospects, with some predicting it could reach a new all-time high.

Veteran trader Peter Brandt also weighed in, noting that Bitcoin needs to rally above $117,570 to avoid midterm bearish sentiment. Brandt pointed out that Bitcoin recently experienced significant sell-offs, partly due to capital rotation from Bitcoin to Ethereum.

However, with strong institutional backing, Bitcoin’s price may recover and even exceed its current level in the coming months.

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