JPMorgan analysts forecast that Bitcoin's price could reach approximately $170,000 within the next 6 to 12 months, driven by leverage adjustments and improved volatility relative to gold. The cryptocurrency market recently experienced a 20% correction from its highs, with significant liquidations in the perpetual futures market on October 10th and November 3rd. Despite these setbacks, the deleveraging phase is largely complete, and the open interest to market capitalization ratio in Bitcoin futures has stabilized.
The analysts highlight that Bitcoin's risk-adjusted appeal is increasing as its volatility ratio to gold falls below 2.0, making it more attractive to investors. To reach the projected price, Bitcoin's market capitalization would need to grow by nearly 67% to align with total gold investments. Currently, Bitcoin is trading approximately $68,000 below its estimated fair value, suggesting a substantial price increase is anticipated in the coming months.
JPMorgan Predicts Bitcoin Could Hit $170,000 in 6-12 Months
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