JPMorgan: Bitcoin is now more attractive than ever

JPMorgan, the world’s largest commercial bank, currently classifies Bitcoin as significantly undervalued. At a price below $87,000, the cryptocurrency is already oversold. If BTC were to match gold’s price performance, a price of $266,000 would be expected—according to analyst Nikolaos Panigirtzoglou, a very realistic target.

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JPMorgan: Bitcoin is now more attractive than ever

Bitcoin has become particularly attractive—at least that’s the conclusion Nikolaos Panigirtzoglou, an analyst at JPMorgan, recently came to. One sign is a divergence between the digital asset and the precious metal gold that has played out over the last few months.

“Gold’s strong rise relative to Bitcoin since last October, combined with a sharp increase in gold volatility, has made Bitcoin look even more attractive versus gold over the long term,” the analyst said, according to a report published by Investing via Yahoo Finance.

JPMorgan confirms: The Bitcoin price has recently fallen as the market repriced the cryptocurrency due to a changing geopolitical and economic situation. According to several assessments, the risks associated with BTC have increased.

Bitcoin
(BTC)
Price
$65,498.00
Market Cap
$1.31 T

However, Bitcoin’s technical fundamentals remain solid. The sell-off in the cryptocurrency is being driven by both institutional investors and retail investors. BTC is oversold once it drops below the $87,000 threshold, Panigirtzoglou says.

Why JPMorgan considers a Bitcoin price of $266,000 natural

As of the editorial deadline, BTC is trading at $68,000—far too low, JPMorgan says. The cryptocurrency currently has enormous unrealized upside, believes the analyst at the world’s largest commercial bank.

“The key point is that Bitcoin’s long-term risk-adjusted upside relative to gold has improved. The Bitcoin-to-gold volatility ratio has fallen to 1.5, a new record low,” Investing writes, citing Panigirtzoglou’s statements.

While the gold price has surged since October, Bitcoin has moved further and further away from the all-time high it set in October. Back then, BTC hit a record high of $126,200. Recently, Bitcoin reached a regional low of $60,000.