JPMorgan Says Bitcoin Has Bottomed at $94,000 and Could Start Rising Again

JPMorgan says Bitcoin has hit its bottom after falling below $95,000 and expects the token to resume rising, potentially reaching a value that could rival gold’s $28.3 trillion market cap.

Forbes reports that the JPMorgan analysts team, led by Managing Director Nikolaos Panigirtzoglou, pointed out that $94,000 is Bitcoin’s bottom, a key level where the price is likely to stop falling and start rising.

The team based their prediction on the cost of producing Bitcoin. According to them, the cost to mine one Bitcoin has risen from $92,000 to $94,000 due to increased network difficulty, which forces miners to use more computing power, raising the cost to mine each coin.

The analysts explained that the cost of mining Bitcoin usually sets a minimum price during market sell-offs, but right now the price of Bitcoin is equal to its production cost, meaning miners are making very little profit and can’t afford for the price to drop much further.

Hence, the analyst team is confident that $94,000 is Bitcoin’s bottom because miners aren’t motivated to sell when prices are low.

JPMorgan Sees Bitcoin Hitting $170k By 2026

JPMorgan analysts predict that Bitcoin could rise to $170,000 by 2026. The analysts based their projections on the fact that Bitcoin is only slightly more volatile than gold, about 1.85 times more, which suggests it is currently undervalued.

Gold has grown faster than Bitcoin and other major assets recently and is now worth over $28 trillion, creating a gap in value. To close this gap, Bitcoin would need to rise about 60-70%, which could push its price to around $170,000.

Supporting this bullish outlook, Strategy co-founder Michael Saylor recently predicted that Bitcoin could surpass gold by 2035, and former Binance CEO  Changpeng Zhao had also said BTC will eventually overtake gold’s market value, but he isn’t exactly sure when.