JPMorgan Sees Bitcoin Surpassing Gold in Coming Months

JPMorgan, the largest American bank by balance sheet size, has shifted its stance on Bitcoin. According to Nikolaos Panigirtzoglou's team, the bank now believes that BTC can outperform gold in the coming months.

The reasoning comes from a volatility-adjusted comparison of the two assets over several cycles. JPMorgan quantifies this relationship, stating that one dollar of Bitcoin carries as much risk as two dollars of gold due to its higher volatility.

Based on this calculation, the bank's model places the theoretical value of BTC near $170,000, with a target of $266,000 in the long term. This is a significant gap from the current price and a drastic change from JPMorgan's previous stance, which compared Bitcoin to a 'pet rock'.

The research position also highlights the potential for a partial shift of defensive savings towards BTC, which would move its price in unprecedented proportions due to gold's mass market dominance.