JPMorgan Claims Bitcoin Price Is “‘Too Low’,” Shares Its Own Year-End Price Target

JPMorgan analysts predict that Bitcoin’s current price is “very low” and could rise to as high as $126,000 by the end of the year.

The team, led by analyst Nikolaos Panigirtzoglou, noted that Bitcoin’s volatility has fallen to historic lows, pushing its fair value higher.

Volatility, which began the year at around 60%, has now fallen to around 30%. According to JPMorgan, this decline brings Bitcoin’s risk-adjusted performance closer to that of gold. Panigirtzoglou said, “Yes, we expect this rise by the end of the year.”

Analysts have compared the tendency for corporate treasuries to accumulate Bitcoin to suppress volatility, likening it to central banks reducing bond market volatility after 2008. Corporate treasuries reportedly currently hold more than 6% of Bitcoin’s total supply.

Additionally, analysts believe index-based inflows are also supporting the rally. MicroStrategy’s inclusion in major indices and Metaplanet’s promotion to mid-cap status on the FTSE Russell index have fueled new capital inflows.

Pointing out that corporate competition has increased, the report stated that KindlyMD, traded on Nasdaq, applied for a $5 billion capital increase after setting Bitcoin as its primary reserve, while Adam Back’s company BSTR aims to rival Marathon Digital.

JPMorgan argued that reduced volatility is a significant advantage for institutional investments. Analysts estimate that Bitcoin’s risk capital consumption ratio compared to gold has fallen to a record low of 2.0. At this rate, Bitcoin’s approximately $2.2 trillion market capitalization should increase by 13%, bringing it closer to gold’s private investment value, which would push the price to $126,000.

*This is not investment advice.