7 hour ago
0 0
BULLISH 📈 : JPMorgan maintains $266,000 Bitcoin target despite current challenges
JPMorgan maintains a long-term target for bitcoin at $266,000 per coin, despite short-term concerns about mining economics and risk sentiment as we approach 2026.
- The target is based on two main pillars: the "soft" floor of bitcoin's production cost and a valuation model comparing bitcoin’s potential market cap to private-sector gold investment on a volatility-adjusted basis.
- Currently, the cost to produce bitcoin is approximately $77,000, while it trades around $66,229. This puts less efficient miners below breakeven.
- Historically, production costs act as "soft" support; if prices remain low, weaker miners exit, reducing difficulty and production costs.
- JPMorgan expects institutional capital to drive increased inflows into digital assets when macroeconomic conditions stabilize by 2026.
- The $266,000 target is derived from a hypothetical scenario where bitcoin matches the scale of private gold investment (~$8 trillion).
- The scenario assumes a bitcoin-to-gold volatility ratio of 1.5, with recent increases in gold volatility enhancing bitcoin’s appeal over the long term.
- JPMorgan sees potential for institutional inflows and regulatory developments to reprice bitcoin's role versus gold by 2026.
