{"id":47901,"date":"2025-10-02T12:13:14","date_gmt":"2025-10-02T17:13:14","guid":{"rendered":"https:\/\/bitcoinmagazine.com\/?p=47901"},"modified":"2025-10-02T12:13:26","modified_gmt":"2025-10-02T17:13:26","slug":"jpmorgan-says-bitcoin-price-undervalued","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/jpmorgan-says-bitcoin-price-undervalued","title":{"rendered":"JPMorgan Says Bitcoin Price Undervalued Relative to Gold, Sees Path to $165K"},"content":{"rendered":"
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Bitcoin could be undervalued compared to gold, according to new research<\/a> from JPMorgan, which says the world\u2019s largest cryptocurrency has \u201csignificant upside\u201d if the so-called \u201cdebasement trade\u201d continues to gather momentum.<\/p>\n\n\n\n

The bank\u2019s analysts estimate bitcoin could climb as high as $165,000 \u2014 roughly 40% above current levels \u2014 based on volatility-adjusted comparisons with gold. The calculation reflects the amount of capital needed to hold bitcoin versus gold and comes at a time when demand for both assets is surging.<\/p>\n\n\n\n

\u201cThe steep rise in the gold price over the past month has made bitcoin more attractive to investors relative to gold, especially as the bitcoin-to-gold volatility ratio keeps drifting lower to below 2.0,\u201d the analysts wrote. <\/p>\n\n\n\n

By JPMorgan\u2019s math, bitcoin\u2019s market cap of $2.3 trillion would need to rise by nearly 42% to match the $6 trillion invested in gold bars, coins, and ETFs when adjusted for relative risk.<\/p>\n\n\n\n

Bitcoin did just end the third quarter<\/a> of 2025 at a record high, fueling the belief among investors that Bitcoin\u2019s price will go up further into the final quarter of the year. <\/p>\n\n\n\n

Bitcoin closed September about 5% higher at roughly $114,000, defying expectations of seasonal weakness. September has often been a difficult month for Bitcoin, but when it has finished higher, the final quarter has tended to deliver outsized gains.<\/p>\n\n\n\n

Data shows<\/a> that in years such as 2015, 2016, 2023 and 2024, positive September closes were followed by fourth-quarter rallies averaging more than 50%.<\/p>\n\n\n\n

Bitcoin\u2019s debasement trade<\/h2>\n\n\n\n

The projection highlights a growing investor shift toward assets viewed as hedges against fiat currency devaluation. That strategy, known as debasement<\/a>, has seen money pour into both bitcoin and gold exchange-traded funds (ETFs) over the past year.<\/p>\n\n\n\n

Retail investors are leading the charge, JPMorgan said, with flows into spot bitcoin ETFs initially outpacing gold earlier in 2025. <\/p>\n\n\n\n

Gold inflows, however, have caught up since August as geopolitical tensions and concerns over fiscal deficits renewed interest in the yellow metal.<\/p>\n\n\n\n

The rising popularity of bitcoin and gold reflects deeper economic anxieties<\/a>. With inflation worries lingering, government deficits ballooning, and confidence in central bank independence wavering, many investors are rethinking their trust in fiat money. <\/p>\n\n\n\n

In emerging markets where currency depreciation is more visible, the appeal of holding scarce assets has grown stronger.<\/p>\n\n\n\n

JPMorgan isn\u2019t necessarily predicting Bitcoin will hit $165,000. Instead, it\u2019s a theoretical exercise showing where Bitcoin would need to be to match gold when adjusting for volatility. <\/p>\n\n\n\n

Still, with more ETFs, custody options, and institutional trading, Bitcoin\u2019s role as a portfolio hedge seems stronger than in previous cycles. As of Thursday morning, bitcoin was trading near $120,000, roughly $45,000 below where JPMorgan\u2019s model suggests it should be. <\/p>\n","protected":false},"excerpt":{"rendered":"

JPMorgan research suggests Bitcoin may be undervalued compared to gold, with potential to rise to $165,000 if the parts of trading gain momentum.<\/p>\n","protected":false},"author":3817,"featured_media":44431,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[76,445,559,2233,847],"class_list":["post-47901","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-bitcoin","tag-bitcoin-dollar","tag-gold","tag-jp-morgan","tag-trade-execution"],"author_data":{"id":3817,"name":"Micah Zimmerman","nicename":"micahzimmerman","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/11\/Micah_Zimmerman_Author_Image.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/06\/JP-MORGAN.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/47901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3817"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=47901"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/47901\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/44431"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=47901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=47901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=47901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}