JPMorgan Says Bitcoin Has '67% Upside,' Sees $170,000 Within Next 6 Months

Core Viewpoint - JPMorgan Chase & Co. analysts predict Bitcoin could rise to $170,000 within 6 to 12 months, supported by recent market corrections and comparisons to gold [1][4]. Market Correction and Deleveraging - The crypto market has corrected approximately 20% from recent highs, with the deleveraging phase in perpetual futures now largely over [2]. - The ratio of open interest in Bitcoin perpetual futures to market capitalization has normalized, indicating a stabilization in the market [2]. ETF Redemptions and Market Sentiment - Recent ETF redemptions were modest compared to strong inflows earlier in October, suggesting a resilient market [3]. - Concerns regarding the $120 million Balancer exploit briefly affected sentiment but did not lead to lasting structural stress [3]. Price Target Justification - JPMorgan's $170,000 target for Bitcoin is based on its volatility relative to gold, with the Bitcoin-to-gold volatility ratio dropping below 2.0 [4]. - To align with private-sector gold investment of approximately $6.2 trillion, Bitcoin's market cap of $2.1 trillion would need to increase by about 67% [4]. Institutional Interest and Market Outlook - The recent correction has improved Bitcoin's long-term setup, making volatility-adjusted returns appear more favorable [5]. - Bitcoin is viewed as undervalued relative to gold, with a potential strong recovery phase anticipated in the next six months [5].