JPMorgan says Bitcoin is undervalued by $68,000 – fair price would match gold at $170,000
According to a new analysis by JPMorgan Chase & Co., Bitcoin (BTC) remains significantly undervalued compared to gold. The bank’s strategists estimate that, based on volatility-adjusted calculations, Bitcoin is currently priced about $68,000 below its fair value. JPMorgan’s research compares the total market capitalization of privately held Bitcoin to that of private investment in gold, which is estimated at roughly $15 trillion worldwide. In contrast, Bitcoin’s market value stands near $2 trillion, despite trading around $102,000 per coin. Reported by newstoday24.de referencing nume.ch.
To achieve parity with gold holdings, Bitcoin would need to reach approximately $170,000, the strategists said. This evaluation reflects the concept of “digital gold,” in which Bitcoin functions as a store of value with limited supply — capped at 21 million coins — and rising institutional demand.
“Bitcoin remains a structurally growing store of value,” JPMorgan analysts wrote. “Despite short-term volatility, its long-term fundamentals support a higher valuation.”
Institutional adoption and scarcity drive outlook
JPMorgan highlights several key factors strengthening Bitcoin’s long-term potential:
- Institutional adoption – Major financial institutions such as BlackRock, Fidelity, and PayPal are increasingly integrating Bitcoin through ETFs and payment services.
- Supply limitation – The April 2024 halving reduced the issuance rate of new coins by 50%, tightening supply and creating potential upward pressure on price.
- Macro-economic diversification – In a global environment marked by inflation and geopolitical tension, digital assets serve as an alternative hedge similar to commodities.
Despite market corrections and investor caution, JPMorgan’s report reinforces a broader trend: Bitcoin’s gradual integration into traditional finance. The volatility-adjusted model implies that the cryptocurrency’s intrinsic value is closer to that of a digital commodity rather than a speculative asset.
A digital store of value with real potential
Analysts believe that, as Bitcoin becomes more embedded in regulated markets, its role as a long-term store of value will strengthen. The bank’s projection of $170,000 is not a short-term target but a structural benchmark — a level that aligns digital assets with established investment classes like gold.
With increasing institutional exposure, transparent regulation, and the growing relevance of blockchain infrastructure, JPMorgan concludes that Bitcoin is likely to narrow the valuation gap with gold in the coming years.
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