Bitcoin Gains Investment Appeal
Despite recent market pressures driven by risk-averse sentiment and weak tech stocks, JPMorgan analysts report that Bitcoin is gaining traction over gold.
Analysts noted that Bitcoin's volatility relative to gold has dropped to around 1.5—a historic low—making it more attractive on a risk-adjusted basis.
Potential Price Surge to $266,000
The report estimates that for Bitcoin to match the $8 trillion private gold investment market, its price could reach $266,000.
While this level is deemed unrealistic for the short term, analysts believe that long-term shifts in investor sentiment could push Bitcoin toward this valuation.
Mild Market Correction
Bitcoin is currently trading below the estimated $87,000 production cost, with weak investor sentiment and continued outflows from spot Bitcoin and Ethereum ETFs.
However, derivatives market liquidations remain relatively contained, without the large-scale deleveraging seen in October last year.
Analysts emphasized that shrinking stablecoin supply reflects a natural adjustment to reduced crypto market capitalization—not a full withdrawal of capital from the sector.
- Bitcoin’s volatility vs gold hits a historic low of 1.5
- Bitcoin could hit $266,000 if it matches gold’s investment scale
- Market correction remains mild, no major deleveraging seen