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JPMorgan says Bitcoin looks cheaper compared to gold
The gold versus Bitcoin (BTC) debate has long divided investors seeking a store of value in uncertain times. Gold, with its millennia-old track record and physical scarcity, is often seen as the ultimate haven: a tangible hedge against inflation and geopolitical risk.
Bitcoin, by contrast, represents a digital evolution of that concept: algorithmically scarce, borderless, and easily transferable across the globe. Advocates argue that Bitcoin’s fixed 21 million supply and decentralized nature make it “digital gold” for the modern economy, offering superior portability and transparency.
What's happening with Bitcoin?
Bitcoin appears undervalued relative to gold following its steep October decline, according to JPMorgan global markets strategist Nikolaos Panigirtzoglou. As MarketWatch reported, Panigirtzoglou explained that the drop was largely fueled by deleveraging in Bitcoin futures. This pushed it to below $100,000 earlier this week, more than 20% off its Oct. 5 all-time high of $126,000.
The strategist noted that the recent deleveraging of Bitcoin stemmed from two primary catalysts.
The first incident was a sharp liquidation in perpetual futures, a derivative that allows traders to speculate on its price without an expiry date. The second was a $128 million exploit of the decentralized-finance protocol Balancer. The latter incident amplified risk aversion in the crypto space, triggering broader liquidations.
Bitcoin's target price
Panigirtzoglou’s “mechanical exercise” indicates that, on a volatility-adjusted basis, Bitcoin’s current valuation screens cheap relative to gold. With Bitcoin’s market cap around $2.1 trillion, he estimated the asset would need to climb roughly two-thirds, to around $170,000, to match the $6.2 trillion of total private sector investment in gold via ETFs and physical holdings.
At the time of writing, gold was trading at $3,981.38 per ounce, down 0.08% in a day, while Bitcoin was trading at $101,833, down by 1.4%.
This article has been published in thestreet.com via Yahoo News.
JPMorgan says Bitcoin looks cheaper compared to gold
The gold versus Bitcoin (BTC) debate has long divided investors seeking a store of value in uncertain times. Gold, with its millennia-old track record and physical scarcity, is often seen as the ultimate haven: a tangible hedge against inflation and geopolitical risk. Bitcoin, by ...
finance.yahoo.com
