Bitcoin Price Prediction: JPMorgan Sees $170,000 Rally vs $28.3 Trillion Gold Peak

Bitcoin could be poised for a dramatic surge to nearly £129,400 ($170,000) within the next year, according to analysts at global banking giant JPMorgan, who believe the cryptocurrency may soon challenge gold's vast £21.5 trillion ($28.3 trillion) private investment market.

The bold projection comes despite Bitcoin's sharp fall in recent days, dropping to just above £73,800 ($94,000) from its October peak of about £99,000 ($126,000).

Rather than signalling deeper trouble, JPMorgan argues that Bitcoin has now reached a critical production cost level that historically acts as a strong natural price floor.

£74,000 Production Cost Becomes Bitcoin's Price 'Floor'

In a report reviewed by Coindesk and detailed by the Economic Times, JPMorgan analysts said the global production cost of mining Bitcoin currently sits at roughly £73,800 ($94,000). They stressed that this level leaves 'very limited downside' because miners typically reduce selling as prices move closer to their break-even point.

As a result, the bank believes Bitcoin is unlikely to see significant declines from this range unless mining economics shift abruptly.

Their report stated: 'The bitcoin production cost has empirically acted as a floor for bitcoin, so a $94,000 production cost implies very limited downside to the current bitcoin price.'

Derivatives Deleveraging Creates a More Stable Market

JPMorgan's analysts also highlighted that the crypto market has recently undergone a substantial period of deleveraging in derivatives, especially in perpetual futures contracts. They view the reduction of forced selling pressure as a major factor stabilising the market.

With derivatives excess mostly flushed out, the bank believes Bitcoin is entering a more structurally resilient environment where accumulation could begin again.

Why Bitcoin Could Hit £129,400 According to the Gold-Parity Model

Based on a long-term valuation model that compares Bitcoin to gold, JPMorgan estimates that the cryptocurrency could climb to about £129,400 ($170,000) within six to twelve months. The bank emphasises that this figure is a valuation framework rather than a guaranteed target, but it reflects the level Bitcoin would need to reach in order to close the gap with gold on a volatility-adjusted basis.

Gold's private investment pool, which includes ETFs, bars, coins and institutional holdings, is valued at approximately £21.5 trillion ($28.3 trillion). Bitcoin's current market cap, by contrast, hovers around £1.5 trillion ($1.9 to $2.1 trillion), highlighting what JPMorgan sees as significant upside potential if institutional adoption continues to grow.

The Institutional Gap That Favour Bitcoin's Rise

JPMorgan calculates that Bitcoin would require around a 67 percent increase in its market cap to reach parity with gold on a volatility-adjusted basis. This projection supports the bank's £129k estimate, provided that current market conditions remain stable and institutional inflows persist. The analysts noted that Bitcoin's volatility has been steadily declining over time, narrowing the gap between Bitcoin and gold as competing stores of value.

A Surge That Could Reshape Global Markets

A surge to £129,400 would have profound implications for global markets. Such a rally could accelerate institutional interest in digital assets, influence the balance of investor capital between cryptocurrencies and gold and reshape how portfolios are diversified across equities, commodities and fixed income. It could also invigorate crypto-connected stocks, blockchain infrastructure companies and digital asset platforms, all of which would benefit from a renewed wave of investment.

Why Bitcoin Still Carries High Risk

However, JPMorgan cautions that Bitcoin remains a high-risk asset. The bullish scenario depends heavily on regulatory clarity, institutional appetite and broader macroeconomic conditions. Analysts warn that market volatility, shifting monetary policy and changes in investor sentiment could all influence Bitcoin's trajectory.

Bitcoin's Most Important Turning Point Yet

Despite those risks, JPMorgan's updated analysis places Bitcoin at a crucial moment in its evolution. The combination of a clearly defined £74k production floor, reduced derivatives overhang and increasing institutional presence provides a more supportive foundation than the market has seen in recent months. Analysts argue that this environment could enable Bitcoin to mount a serious challenge to gold's dominance as a store of value.

While no price target is guaranteed, the bank's assessment suggests that Bitcoin's next major move could be upward, potentially marking one of the most important phases in the cryptocurrency's history.