JPMorgan calls Bitcoin Price Bottom, Predicts It Will Challenge Gold Next Year

A fresh wave of panic gripped the market as Bitcoin fell below $95,000 for the first time in six months, triggered by a severe liquidation. As the bearish rampage continues, Wall Street giant JPMorgan has called a Bitcoin bottom and predicts a fresh uptrend, which will propel Bitcoin to challenge gold, currently sitting on a $28.3 trillion market cap. 

JPMorgan Calls $94,000 Bitcoin Price Bottom

As reported by Forbes, the JPMorgan analysts team, led by Managing Director Nikolaos Panigirtzoglou, has identified the $94,000 mark as the BTC bottom, a significant support zone where fundamentals are expected to take hold, pushing its price upward. The team based their prediction on the dynamics behind Bitcoin production costs.

According to JPMorgan analysts, the cost of mining one bitcoin has surged in recent months, from $92,000 to $94,000, due to increased network difficulty. Traditionally, miners often combat a surge in difficulty with an increase in hash power per block, which in turn lifts the marginal cost of each coin mined.

According to the team, the cost of Bitcoin mining has always acted as a floor for the digital asset during sell-offs. Meanwhile, according to JPMorgan, the spot price ratio to production cost now stands at 1:0, indicating that miners’ operating margins have become increasingly thin, leaving little room to operate below the current cost without triggering stress in the mining sector.

Thus, the analysts are confident that, with this model, $94,000 is the bottom for Bitcoin’s price, because miners currently lack incentives to sell into weakness, which has diminished. Their analysis comes after the BTC price crashed below $100,000 earlier this week, dropping to as low as $94,000 in the process. 

BTC To Experience $170,000 Upside By 2026

Meanwhile, contrary to popular opinion, JPMorgan analysts also made a bold prediction about the Bitcoin price, forecasting a surge to $170,000 within 6 to 12 months. The analysts also based these bullish projections on the fact that the Bitcoin-Gold volatility ratio has decreased below 2.0, indicating that Bitcoin now consumes approximately 1.85 times more risk than gold, making it undervalued at its current valuation.

Gold has outpaced Bitcoin and several other top assets over the past few months, currently sitting at a market valuation of over $28 trillion, creating a valuation gap. Thus, to close the gap, Bitcoin’s market cap valuation will need to rise by approximately 60%-70%, which would result in a theoretical surge to $170,000. Notably, Strategy co-founder Michael Saylor recently predicted that BTC will surpass gold by 2035. 

Binance’s former CEO Changpeng Zhao had earlier made a similar prediction. He declared that BTC will eventually overtake gold’s market cap, though he doesn’t know exactly when.