JPMorgan predicts Bitcoin could rise to $165,000, driven by decreased volatility and strong institutional ETF inflows.
JPMorgan has recently forecasted that Bitcoin’s price could rise to $165,000, marking a potential 42% increase from its current value. The bank’s analysts believe Bitcoin is significantly undervalued when compared to gold. This forecast highlights Bitcoin’s growing role as a store of value and an alternative investment, especially amid rising gold prices.
Bitcoin Current Valuation Compared to Gold
JPMorgan’s analysis shows that Bitcoin is becoming more stable compared to gold. The bank pointed out that Bitcoin volatility relative to gold has fallen below a 2.0 ratio. This change makes Bitcoin an increasingly attractive option for investors who are cautious about risk.
🚨JPM Says Bitcoin Undervalued vs. Gold, Highlights “Significant Upside” to $165k.
“The 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… pic.twitter.com/7YuIaP2Kzi
— matthew sigel, recovering CFA (@matthew_sigel) October 2, 2025
According to JPMorgan, Bitcoin fair market value should be around $165,000, a 42% increase from its current value. The bank believes this price adjustment reflects Bitcoin potential market growth. It would require Bitcoin’s market capitalization to expand by nearly $1 trillion to match this forecast.
The estimated fair value of Bitcoin ties it to the $6 trillion gold market. By aligning Bitcoin value with gold, JPMorgan emphasizes its growing role as a store of value. Investors may see Bitcoin as a more cost-effective option compared to gold in the future.
ETF Inflows Strengthen Bitcoin Mainstream Appeal
Bitcoin growing popularity is evident through the rise in ETF inflows. Recent data shows that Bitcoin ETFs are receiving $675.8 million in daily investments. This steady inflow of capital suggests that Bitcoin is gaining acceptance among institutional investors.
As of now, nearly $156 billion is invested in Bitcoin ETFs. This growth reflects Bitcoin increasing presence in the financial market. With this rise in institutional involvement, Bitcoin is becoming more integrated into the broader investment landscape.
The increase in ETF investments highlights Bitcoin’s potential to become a more stable asset. The shift toward Bitcoin ETFs shows how the cryptocurrency is gaining credibility. Institutional investors are showing more interest in Bitcoin as a viable asset class, further boosting its legitimacy.
Bitcoin Potential to Narrow the Valuation Gap
The gap between Bitcoin’s current price and its fair value is narrowing. JPMorgan notes that this gap has reached historically low levels when adjusted for gold’s volatility. The report suggests that Bitcoin’s value could increase to close this gap.
Several financial institutions are beginning to share JPMorgan’s optimistic outlook. For example, Citigroup predicts that Bitcoin price could rise to $231,000 in the next 12 months. This growing consensus among experts shows confidence in Bitcoin future price appreciation.
As Bitcoin price approaches its fair value, it may become a more viable alternative to gold. Investors could consider Bitcoin a safer store of value as gold prices rise. Bitcoin relative affordability compared to gold makes it an attractive choice for investors.
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