JPMorgan Predicts Bitcoin’s Potential to Reach $170,000
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In a recent analysis, global investment bank JPMorgan forecasted that Bitcoin could rise toward $170,000 in the upcoming months. As it stands, the prediction is based on the idea that Bitcoin is beginning to behave more like gold, a crypto asset more like a safe haven.
Additionally, JPMorgan’s analysts pointed to several factors, including changing market expectations, risk aversion, and uncertainty around the stance of a major Bitcoin investor, Strategy (Nasdaq: MSTR), as reasons behind the current price pressure on Bitcoin.
To this end, they explained that Bitcoin’s volatility-adjusted comparison with gold suggests that its price could reach around $170k within six to twelve months.
Bitcoin’s Price Struggles and Strategy’s Role
At the moment, Bitcoin is trading at $89,712, reflecting a major drop from its previous highs. JPMorgan noted that the concern over Strategy’s possible decision to sell its Bitcoin holdings has also played a function in the current bearish market. Strategy’s CEO, Phong Le, suggested that any sale would depend on the firm’s market value (mNAV) falling below 1, but JPMorgan added that the company’s recent $1.4 billion cash reserve makes forced selling less likely.
However, despite this, the analysts also highlighted the upcoming MSCI review on January 15, which could lead to companies with significant digital asset exposure being removed from major stock indices. To this end, it is believed that this event could have a negative impact on Bitcoin’s price if the review leads to unfavorable decisions.
Factors Supporting Bitcoin’s Long-Term Potential
Despite the current struggles, JPMorgan believes that Bitcoin’s price movement is still showing signs of gold-like behavior during periods of market stress. In the past, times of economic uncertainty and market volatility have led investors to Bitcoin as a way to protect their wealth.
While there are risks, such as the possibility of large-scale selling by Strategy or an unfavorable MSCI decision, JPMorgan emphasized that Bitcoin’s growing institutional adoption, a more stable market structure, and its limited supply could make it very strong in the future. Pro-crypto supporters believe these factors will help Bitcoin regain its previous highs and continue to rise in the future.
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