After a sharp market correction, JPMorgan analysts now see Bitcoin poised for a major rebound, potentially reaching $170,000 within the next six to twelve months. The prediction comes from a recent report led by Nikolaos Panigirtzoglou, which highlights renewed stability in the crypto market and improving risk dynamics compared to gold.
Bitcoin Market Stabilizes After Major Correction
The crypto market recently underwent a 20% correction, driven by large-scale liquidations in perpetual futures—marking one of the biggest deleveraging events in Bitcoin’s history. However, JPMorgan’s analysts suggest this phase is now largely complete.
According to the report, the ratio of open interest in Bitcoin futures to market capitalization has normalized, signaling that excessive leverage has been flushed out. This stabilization could pave the way for a healthier and more sustainable price recovery. Despite some minor ETF redemptions, overall investor participation has remained steady, indicating that confidence in the market remains intact.
Ethereum has followed similar trends, though its movements have been less dramatic compared to Bitcoin, reinforcing the notion of a broader crypto market reset.
Rising Gold Volatility Boosts Bitcoin’s Appeal
Another key factor driving JPMorgan’s bullish outlook is the recent increase in gold volatility. The analysts note that Bitcoin has become more attractive on a risk-adjusted basis, positioning it as a stronger alternative store of value.
Based on current metrics, JPMorgan estimates Bitcoin’s fair value at approximately $170,000, representing a potential 67% upside from its current price near $103,000. The bank believes this trend signals renewed investor confidence and growing optimism for the crypto market’s long-term potential.
As market leverage resets and macroeconomic conditions stabilize, Bitcoin could be entering a new phase of sustained growth—one that may push it to fresh all-time highs in the coming year.
