Bitcoin on Track to $165,000: JPMorgan Predicts Surge Driven by Record Gold Prices

Crypto markets are once again in the spotlight of Wall Street. According to the latest analysis from JPMorgan, Bitcoin could climb to $165,000 after volatility adjustment, fueled by record-breaking gold prices and the accelerating trend of the so-called devaluation trade.

Investors Seeking Refuge in BTC and Gold In the last quarter, both retail and institutional investors accelerated purchases of assets that serve as a hedge against inflation. Alongside gold, Bitcoin is emerging as the biggest winner. Currently, BTC trades at $119,693, marking a 7% increase over the past week. JPMorgan’s models suggest Bitcoin needs to rise another 40% from current levels to match the scale of private gold holdings when risk is factored in. Analysts led by Nikolaos Panigirtzoglou emphasize that this trend began in late 2024 ahead of the U.S. elections and has only gained momentum since.

Gold Rising, Bitcoin Following Gold’s sharp price increase in recent weeks has boosted Bitcoin’s attractiveness. The BTC-to-gold volatility ratio has dropped below 2.0, showing that JPMorgan still views Bitcoin as undervalued. According to their model, BTC’s price is currently about $50,000 lower than it should be. CryptoQuant adds that if demand continues at current levels, Bitcoin could reach $160,000–$200,000 by the end of the year. Monthly net demand has been rising by over 62,000 BTC, a signal historically seen before major fourth-quarter rallies in 2020, 2021, and 2022.

ETF Inflows in the Billions JPMorgan also pointed to a massive increase in Bitcoin ETF inflows. Just this week, funds attracted over $1.6 billion in three days: BlackRock IBIT: +$405.5 millionFidelity FBTC: +$179.3 millionBitwise BITB: +$59.4 million BTC ETFs are now seeing their strongest surge since September, strengthening investor confidence in the long-term trajectory.

Is Bitcoin Headed Toward $1 Million? Political forecasts are adding fuel to the optimism. Eric Trump, son of the U.S. president, recently stated that he expects BTC to eventually reach $1 million, as cryptocurrencies gradually replace the traditional financial system. For the markets, the message is clear: the combination of soaring gold prices, persistent inflation, and massive ETF inflows is laying the groundwork for Bitcoin to set new all-time highs.

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