Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000

Paul
2 hours ago
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Bitcoin coins float over JPMorgan building, highlighting bank’s bullish forecast.

Highlights

  • According to JPMorgan, Bitcoin price might go to $165,000, claiming it is currently undervalued compared to gold.
  • Bitcoin ETFs raise in $675.8 million daily, strengthening Bitcoin’s mainstream adoption.
  • The difference in value highlights Bitcoin’s growing role as digital gold.

JPMorgan says Bitcoin (BTC) is undervalued compared to gold and could rise to $165,000, giving it a potential 42% upside. The bank highlighted that BTC’s volatility relative to gold has dropped below 2.0, making it increasingly attractive to investors. Analysts argue that the recent surge in gold prices has widened the valuation gap, suggesting Bitcoin’s fair value should be much higher.

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JPMorgan Highlights Bitcoin’s Undervaluation As ETF Inflows Hit $675.8 Million

According to the JPMorgan analysis shared by Matthew Sigel, a VanEck executive, Bitcoin currently consumes only 1.85 times more risk capital than gold. On this basis, they estimate that BTC’s market capitalization of $2.3 trillion would need to expand by close to $1 trillion.

That would bring its valuation closer to $3.3 trillion and set BTC price at $165,000. BTC price is currently $119,000 remains about 34.5% below JPMorgan’s projected fair value target of $160,000.
The estimate is based on aligning Bitcoin’s risk-adjusted value with the roughly $6 trillion invested in gold through bars, coins, and ETFs.

It states in the note that the rise in the price of gold makes it more costly to use as a safety net. Hence, Bitcoin is less costly. Due to this fact, Bitcoin has a comparative advantage, as investors might transfer funds from gold to digital assets. This view contrasts with gold advocate Peter Schiff, who recently criticized Bitcoin’s performance following gold’s rally.

JPMorgan stressed that the calculation is mechanical and based purely on volatility-adjusted comparisons, but the conclusion still signals a strong upside for Bitcoin.

At the same time, BTC ETFs are showing historic strength. Data from SoSoValue reveals that U.S. spot Bitcoin ETFs recorded $675.8 million in daily inflows. With nearly $156 billion now locked in ETF holdings, Bitcoin’s financial footprint is already comparable to some gold-backed funds.

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Valuation Gap Highlight BTC’s Growing Credibility As Digital Gold Rival

The bank also noted that the difference between BTC price and its fair value. According to them, when adjusted for gold’s volatility, this has reached historic lows. In fact, a number of major institutions are echoing bullish sentiment. Citigroup recently predicted Bitcoin price could climb to $231,000 within 12 months.

A chart included in the report shows that Bitcoin is undervalued by more than $50,000 relative to its fair value model. This gap highlights how much BTC would need to climb to restore equilibrium with gold. By linking BTC’s fair value to gold, JPMorgan gives investors a benchmark that could guide their investments in the future.

JPMorgan chart shows Bitcoin undervaluation compared to gold volatility-adjusted fair value.
JPMorgan chart reveals Bitcoin trading far below its fair value compared to gold, signaling strong upside potential.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.