JPMorgan Predicts Bitcoin Could Rise to $165,000 Adjusted for Volatility
JPMorgan projects that bitcoin could reach $165,000 on a volatility-adjusted basis compared to gold.
- Bitcoin needs to rise about 40% from its current level of approximately $119,000 to match private gold holdings when risk is considered.
- The "debasement trade" involves buying assets like bitcoin and gold to hedge against fiat currency devaluation.
- Retail investors have increased investments in bitcoin and gold ETFs due to inflation concerns, government deficits, and declining trust in fiat currencies.
- Institutional investors are engaging primarily through CME futures rather than ETFs, with a net buying trend since 2024.
- The rising gold price has enhanced bitcoin's appeal, as the bitcoin-to-gold volatility ratio is now below 2.0, indicating bitcoin is undervalued relative to gold.