- JPMorgan views on the Bitcoin’s recent slump as buying opportunity, with leverage resets paving the way for a healthier the next uptrends.
- Despite nearing-term risks, Bitcoin’s “digital gold” narrative strengthens as it trades at a rare discount compared to physical gold.
Bitcoin (BTC) now trading at a compelled discount to gold, according to a recent analysis from JPMorgan Chase. The investment bank’s global markets strategist, Nikolaos Panigirtzoglou, arguing that the cryptocurrency’s 20% slump last month has reset leveraging and volatility metrics, positioning BTC as an undervalued hedge against traditional safe-haven assets.
As Crypto News Flash (CNF) highlighted earlier, throughout October Bitcoin faced a major litmus test as investors lost about $500 billion during the recent corrections. This came amid the ongoing U.S. government shutdown and strong profit-taking by whales and institutions. Now, JPMorgan strategist Nikolaos Panigirtzoglou links the recent market analysis of Bitcoin (BTC) with its value relative to gold, stating:
Having been $36,000 too high compared [with]gold at the end of last year, Bitcoin is now around $68,000 too low.
In addition, Panigirtzoglou attributing with the downturn primarily to aggressive deleveraging in perpetual futures markets, where open interest had spiked to unsustainable levels before a massive unwind.
For Bitcoin, October was brutal—the asset peaked at $126,000 early in the month before cascading below $100,000 by early November. This 20% wipeout erased over $500 billion in market capitalization, according to recent market observations.
A pivotal trigger was the November 3 liquidation frenzy, exacerbated by the $128 million exploiting of the DeFi protocol Balancer, which rippled through crypto lend platforms and amplified the sell pressure. Subsequently, market reactions have been muted but telling. U.S. spot Bitcoin ETFs saw modest redemptions—though still far outpaced by October’s inflows—while equity markets wobbled on softer jobs data.
Market Price Implications for Bitcoin (BTC)
JPMorgan’s assessment leans decisively bullish for Bitcoin’s price trajectory over the next 6–12 months. The October slump, while it was painful, acted as a healthy purge of overleveraged positions, restoring equilibrium and making BTC’s risk-reward profile more attractive to conservative investors.
That said, bearish risks remain if deleveraging proves incomplete or external pressures increase, such as prolonged ETF outflows or a U.S. recession delays rate cuts. Bitcoin’s correlation to equities (currently 0.65) suggests that further stock market weakness could drag BTC lower in the short term, potentially testing $92,000 CME gap support.
However, JPMorgan’s view—that the correcting enhances Bitcoin’s long-term attractiveness—outweighs these short-term headwinds. BTC remains well-positioned for net bullish gains as “digital gold” continuesly capture investor attention in a fragmenting financial landscape. Investors should keep an eye on perpetuals open interest for signs confirming this pivot.
At the time of writing, Bitcoin (BTC) trades at $100,983, with a decrease of 1.96% in the past 24 hours, according to CoinMarketCap’s live data, with a market cap of around $2.04 trillion, reflecting the October correction highlighted by JPMorgan. See BTC price chart below.