“Bitcoin Is Very Cheap” – JPMorgan’s Bold Take Amid Market Pressure
JPMorgan is turning heads with its latest take on Bitcoin. The banking giant now believes Bitcoin is "very cheap," a major change from its past cautious tone. This call comes as Bitcoin hovers around $102,000, well below where JPMorgan says it should be trading.
In a report led by strategist Nikolaos Panigirtzoglou, the bank compared Bitcoin to gold, viewing them both as safe havens. The numbers, according to JPMorgan, suggest Bitcoin's value should be closer to $170,000. That's about 67% higher than where it stands now.
What JPMorgan Sees in Bitcoin
The bank's analysis is based on a method that adjusts for risk. Gold and Bitcoin don’t move the same way. Bitcoin is usually more volatile, but that gap is shrinking.
JPMorgan looked at how much money is invested in private gold holdings, around $6.2 trillion, and compared that to Bitcoin's market cap. Then they adjusted those figures using a risk factor. The result is that Bitcoin's "fair value" should be much higher.
How This Affects the Market
The timing of this report matters. Bitcoin just went through a rough patch. Prices dropped nearly 20% from recent highs. A wave of liquidations swept through crypto futures markets, which shook out weak positions. JPMorgan, though, believes that the storm has passed.
They say the leverage in the system is now back to normal. The number of open Bitcoin futures contracts relative to market cap has returned to its average. That suggests the market may be more balanced now, with fewer risky bets. A calmer market can help prices hold steady or rise more predictably.
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Why This Call Matters
JPMorgan wasn’t always friendly to Bitcoin. In fact, CEO Jamie Dimon once called the cryptocurrency a “fraud” and a “Ponzi scheme.” That’s what makes the bank’s current statement so striking. One of Wall Street’s top banks is now publicly backing Bitcoin’s long-term value. It gives a green light to investors who were waiting for a trusted signal.
They’re also not the only ones. Morgan Stanley and others are telling clients to consider holding a small portion of their portfolios in Bitcoin. Some suggest between 2% and 4%. For big investors, that shift could move billions of dollars into crypto.
More than just talk, JPMorgan is acting too. The firm is developing its own digital tokens and letting institutional clients use Bitcoin and Ethereum as collateral for loans. It’s a sign that traditional finance is getting more comfortable with these assets.
Bitcoin is no longer just a tech experiment. It’s becoming a real part of the financial system. With banks like JPMorgan giving it a vote of confidence, more institutions might follow.
Some pension funds, hedge funds, and asset managers have already started testing the waters. As regulatory clarity improves and custody solutions get stronger, more large-scale capital could move in. This kind of momentum often builds slowly, then accelerates once enough major players feel the environment is stable and secure. JPMorgan’s stance could mark the tipping point that brings more institutional money into Bitcoin.
Looking at the Bigger Picture
JPMorgan's view strengthens the argument that Bitcoin is not just an alternative asset. For many, it’s a hedge against inflation or problems with traditional currencies. When gold becomes more volatile, some investors start looking at Bitcoin as the better bet for the future, even up to 2035.
It’s not just about price, but also timing. Bitcoin's recent price drop and market shakeout may have cleared the way for a more stable climb. If risk levels stay low and confidence grows, BTC could move closer to the level JPMorgan projects.
Other signs of change are already in motion. Large financial firms are building out crypto teams. Regulators are refining rules. Brokerages are adding Bitcoin access for their clients. These developments, while gradual, add weight to JPMorgan’s view that Bitcoin’s role in global finance is only expanding.
Wall Street seems to be warming up to that idea. Now that one of its biggest players is saying Bitcoin is undervalued, the spotlight on crypto just got a little brighter.