JPMorgan analysts have set a target price for Bitcoin of $165,000 by the end of the year, arguing that the cryptocurrency is significantly undervalued compared to gold, CoinDesk reported on Thursday.
In a report led by managing director Nikolaos Panigirtzoglou, the bank stated that Bitcoin's volatility relative to gold has decreased, with the volatility ratio between Bitcoin and gold now standing at 1.85.
Based on this ratio, Bitcoin's market capitalization would need to increase by 42% to match private sector investment in gold, implying a price of $165,000.
Analysts noted a sharp shift in sentiment since the end of 2024, when Bitcoin was considered overvalued at $36,000; it is now considered undervalued at approximately $46,000.