Global financial giant JPMorgan published an analysis on November 6 claiming that Bitcoin now has “significant upside” and looks mechanically cheaper than gold on a volatility-adjusted basis.
The post-correction opportunity
The analysis, led by strategist Nikolaos Panigirtzoglou, assessed the impact of the recent market turmoil which saw Bitcoin slide from its $126,000 all-time high in early October, briefly dipping below $100,000 this week.
The report concludes that the severe decline was caused primarily by a massive liquidation and deleveraging in Bitcoin perpetual futures—a dynamic that is now mostly behind the market. The ratio of perpetual futures open interest to Bitcoin’s market capitalization has returned to its long-term average, suggesting the risk of a further immediate, forced liquidation cascade is low.
Volatility-adjusted value
By comparing Bitcoin and Gold based on their volatility-adjusted risk consumption, Panigirtzoglou calculated that Bitcoin is dramatically undervalued. His calculation suggests that Bitcoin’s price needs to rise by roughly two-thirds—implying a price near $170,000—to match the $6.2 trillion in private sector investment in gold on a volatility-adjusted basis.
JPMorgan’s conclusion that Bitcoin is now “around $68,000 too low” compared to gold suggests that the recent price correction has created a fundamental buying opportunity, strongly affirming the “digital gold” narrative among institutional investors for the next 6-12 months.
