JPMorgan Says Bitcoin Is Undervalued vs Gold, Targets $170K Fair Value
JPMorgan analysts led by strategist Nikolaos Panigirtzoglou argue that bitcoin is currently oversold relative to gold. They compare bitcoin’s private-investor adoption against gold’s and find that bitcoin’s market cap would need to climb to about $170,000 to match gold’s 7–8% share held by private investors. Currently, bitcoin trades closer to a 2–3% ratio, implying potential upside of more than 70%. The team bases this fair value estimate on the ratio of private holdings. Their analysis highlights bitcoin’s evolving role as digital gold and suggests substantial long-term potential if adoption trends continue.
Bullish
JPMorgan’s fair value target of $170K for bitcoin signals strong institutional confidence and highlights a valuation gap versus gold. Traders often react positively when major banks publish bullish price models, boosting short-term buying pressure. Historically, similar reports from leading financial firms have triggered multi-week rallies—for example, the surge after early 2021 gold-bitcoin comparisons. In the long term, framing bitcoin as digital gold may attract additional private and institutional inflows, underpinning sustained price support.