JPMorgan bank giant says Bitcoin It could rise to around $ 165,000 in a base adjusted by volatility in relation to gold, highlighting what the bank sees as a significant increase if the so -called “degradation trade” continues to gain impulse.
The Wall Street lender models suggest that Bitcoin would need to increase approximately 40% of the current levels so that it coincides with the scale of private gold holdings once the risk is counted.
The largest cryptocurrency in the world quoted around $ 119,000 at the time of publication.
Degradation trade implies buying assets such as gold or bitcoin to protect against the devaluation of fiduciary currencies.
The bank projection occurs when retail investors accelerated their hug from degradation trade, reaching funds quoted in Bitcoin and Gold Exchange in the last quarter.
Analysts led by Nikolaos Panigirtzoglou pointed out that the flows in these products have increased since the late 2024, a trend that retired before the presidential elections of the United States.
Analysts framed trade as a response to long -term inflation concerns, government deficit balloons, questions about the independence of the Federal Reserve, decrease confidence in fiduciary currencies in some emerging markets and a broader movement to diversify the US dollar.
The cumulative flows in the ETFs of Bitcoin and Gold Spot have increased abruptly, said JPMorgan, and retail buyers drive much of the activity. The fund quoted by Bitcoin Exchange (ETF) initially exceeded gold at the beginning of the year, particularly after the “Liberation Day”, but the ETF of Golden have been updated since August, reducing the gap.
Institutional investors have also been participating, according to JPMorgan, although mainly through the futures of Bitcoin and Gold of Chicago Mercantile Exchange (CME) instead of ETF. The representative of the bank based on open interest shows that institutions have been net buyers since 2024, but their impulse has recently delayed retail demand.
The strong increase in gold prices during the past month has also reinforced the relative attraction of Bitcoin, since the Bitcoin-Oro volatility ratio has moved below 2.0. This change underlines the opinion of the bank that Bitcoin remains undervalued in relation to gold, with its current price of approximately $ 50,000 below where the JPMorgan model suggests that it should be.
Read more: When could Bitcoin go out to new maximums? Beware of gold
