Analysts at JPMorgan Chase have projected a potential rise in Bitcoin (BTC) to $165,000, citing the cryptocurrency’s current undervaluation compared to gold. As Bitcoin’s volatility decreases and gold prices continue to climb, demand for the first cryptocurrency as a hedge asset is growing.
Bitcoin vs. Gold
Technical analysis indicates that to “catch up” with gold, Bitcoin’s market capitalization would need to increase by 42%, corresponding to a price of $165,000. According to JPMorgan Chase, Bitcoin remains significantly undervalued relative to gold, which underpins its growth potential through the end of 2025.
A key driver for this forecast is capital rotation, where investors move funds between assets to protect their portfolios during periods of fiat devaluation. Recent inflows into gold- and Bitcoin-based ETFs demonstrate this trend:
- Gold ETFs have seen weekly net inflows ranging from $1.8 billion to $4.2 billion since late August 2025 (World Gold Council).
- Spot Bitcoin ETFs received $3.53 billion in net inflows during September 2025 (SoSoValue).
These dynamics suggest that Bitcoin may be absorbing less investment than gold relative to its risk profile. JPMorgan Chase notes that Bitcoin’s volatility index relative to gold has fallen below 2 points, implying that the cryptocurrency should attract roughly 1.85 times more risk capital than gold.
Market Implications
To align with private gold investments of $6 billion, Bitcoin’s capitalization would need to grow by 42%, theoretically placing its price at $165,000. Analysts also note that Bitcoin was overvalued at the end of 2024, and correlations between Bitcoin and gold show varying trends:
- Short-term (30-day) and long-term (365-day) correlations remain positive.
- The 90-day moving average still indicates inverse correlation.
Since mid-August 2025, gold has outperformed Bitcoin, but subsequent price movements have made the cryptocurrency a more attractive investment relative to the precious metal, reinforcing its appeal as a hedge asset, JPMorgan Chase analysts highlight.
