JPMorgan Predicts Bitcoin Could Surge to $170,000 as Market Stabilizes

Bitcoin (BTC) may be gearing up for another major rally, with analysts at JPMorgan forecasting a potential price surge to $170,000 within the next six to twelve months. In a recent market report, strategist Nikolaos Panigirtzoglou and his team highlighted that the recent deleveraging in bitcoin perpetual futures—which caused significant volatility earlier this year—appears to be largely behind the market, paving the way for renewed bullish momentum.

According to the bank’s analysis, the stabilization of the crypto derivatives market signals a healthier foundation for Bitcoin’s next upward move. The report attributes the selloffs in October and November to widespread liquidations and events like the $120 million Balancer exploit, which triggered short-term panic across crypto markets.

JPMorgan’s bullish projection is based on a comparative model with gold, often seen as Bitcoin’s traditional rival store of value. The bank views Bitcoin as “digital gold” but currently undervalued when adjusted for risk. Their model assumes that Bitcoin carries about 1.8 times more risk capital than gold. With over $6.2 trillion invested in physical gold through ETFs, coins, and bars, Bitcoin’s market cap of $2.1 trillion would need to expand by two-thirds to match that exposure—implying a BTC price of around $170,000 from its current level near $101,000.

The analysts also noted that while central banks and retail investors continue to buy gold, rising volatility could push investors toward Bitcoin as a more risk-adjusted hedge against equities. Despite concerns over tightening U.S. banking reserves, JPMorgan believes expanding non-bank liquidity and a stable money supply will continue to support risk assets like crypto.

The bank emphasized that its forecast isn’t speculative but derived from a mechanical valuation model, reinforcing Bitcoin’s growing credibility as a mainstream investment asset.