"Bitcoin could be undervalued compared to gold, according to new research from JPMorgan, which says the world's largest cryptocurrency has "significant upside" if the so-called "debasement trade" continues to gather momentum. The bank's analysts estimate bitcoin could climb as high as $165,000 - roughly 40% above current levels - based on volatility-adjusted comparisons with gold. The calculation reflects the amount of capital needed to hold bitcoin versus gold and comes at a time when demand for both assets is surging."
"By JPMorgan's math, bitcoin's market cap of $2.3 trillion would need to rise by nearly 42% to match the $6 trillion invested in gold bars, coins, and ETFs when adjusted for relative risk. Bitcoin did just end the third quarter of 2025 at a record high, fueling the belief among investors that Bitcoin's price will go up further into the final quarter of the year."
JPMorgan projects bitcoin could climb to $165,000, about 40% above current levels, using volatility-adjusted comparisons with gold. The analysis measures capital required to hold bitcoin versus gold amid rising demand for both assets. The bitcoin-to-gold volatility ratio has drifted below 2.0, increasing bitcoin's relative attractiveness after a steep gold price rise. JPMorgan calculates bitcoin's $2.3 trillion market cap would need to increase nearly 42% to match the $6 trillion invested in gold when adjusted for relative risk. Retail flows into spot bitcoin ETFs outpaced gold earlier in 2025, though gold inflows have since caught up.
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