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JPMorgan analysts, led by Nikolaos Panigirtzoglou, have predicted that the Bitcoin price could still rally to $165,000. They also provided a timeline for when this could happen and their reasons for this bullish outlook on the flagship crypto.
JPMorgan Analysts Predict Bitcoin Price Rally To $165,000
JPMorgan stated that Bitcoin is undervalued against gold and that it had significant upside to $165,000, which it could reach by year-end, marking a new all-time high (ATH) for BTC. Analysts at the bank noted that the steep rise in the gold price over the past month has made Bitcoin more attractive to investors relative to gold, especially as the BTC-to-gold volatility has drifted lower to below 2.0.
The analysts noted that this volatility ratio implies that BTC currently consumes 1.85 times more risk capital than gold. Therefore, BTC’s market cap would have to “mechanically” rise by close 42%, putting the Bitcoin price at $165,000, to match the volume-adjusted basis of the around $6 trillion of private sector investment in gold. In line with this, the JPMorgan analysts declared that the mechanical exercise could thus imply significant upside for BTC.
Source: Chart from Matthew Sigel on X
The JPMorgan analysts also alluded to the ‘debasement trade’ as investors continue to invest in Bitcoin and gold as a hedge against inflation. This is evident in the increase in Bitcoin ETF inflows once again, with these funds taking in over $3.2 billion in net inflows this week, according to SoSo Value data.
This marks the second-largest net weekly inflows since they launched last year. Thanks to this, the BTC price has started October on a high note, up already 7% since the start of the month. Meanwhile, BTC already came close to reaching its ATH of $124,400 yesterday, rising to as high as $124,000.
Standard Chartered Gives More Bullish Prediction
Standard Chartered analyst Geoff Kendrick has provided a more bullish outlook for the Bitcoin price, predicting that it could rally to $200,000 by year-end. He believes that BTC could hit a new record if the U.S. government shutdown is prolonged, noting the flagship crypto’s correlation with Treasury term premiums.
He also predicted that the BTC price could rally to $200,000 as more inflows pile into the BTC ETFs, with investors viewing the crypto asset as a hedge against macroeconomic uncertainty. Meanwhile, the Standard Chartered analyst forecasts that BTC could rally to $135,000 soon, which is above Citigroup’s $132,000 year-end target for the flagship crypto. Notably, rallies to these targets will mark a new ATH for Bitcoin.
At the time of writing, the Bitcoin price is trading at around $112,500, up over 2% in the last 24 hours, according to data from CoinMarketCap.
BTC trading at $122,268 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Getty Images, chart from Tradingview.com
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