Key Points
- JPMorgan disclosed that it has increased its Bitcoin holdings by 64% and now owns 5.28 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) Exchange Traded Fund (ETF),
- JPMorgan’s analysts, led by strategist Nikolaos Panigirtzoglou, predicted that Bitcoin would reach $170,000 within six to twelve months.
- Bitcoin has reclaimed $102k level.
JPMorgan disclosed that it has increased its Bitcoin holdings by 64% as of September 30. The bank now owns 5.28 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) Exchange Traded Fund (ETF), according to the 13F-HR Institutional Investment Manager holdings report published on the SEC website yesterday, November 7. Moreover, JPMorgan is bullish on Bitcoin. According to a note published by the Bank’s analysts, led by strategist Nikolaos Panigirtzoglou, Bitcoin would reach $170,000 within six to twelve months.
The news of increased BTC holding has sent bullish signals to the crypto market, reeling under the macro pressure, the market cap of has increased to $3.44 trillion, and Bitcoin has reclaimed $102k level.
The Increasing Institutional Appeal of Bitcoin
The increased holdings and bullish predictions from JP Morgan clearly show a growing institutional interest in the token, and the Exchange Traded Funds serve as the most attractive entry points for them. The JP Morgan CEO, Jamie Dimon, was one of the outspoken critics of cryptocurrency, but had recently changed his stance by admitting that the crypto, blockchain, and stablecoins were real while speaking at the investment conference in Saudi Arabia last month. Besides, the bank is reportedly expected to allow Bitcoin and Ethereum as collateral for institutional borrowers in December this year.
Also Read: How Much Has JPMorgan Invested In Bitcoin?
According to JP Morgan analysts, the deleveraging phase that followed the October 10 crash is already over, and Bitcoin is stabilizing and would reach $170k within 6 to 12 months.
The analysts noted that, overall, they believed that perpetual futures were the most important instruments to watch in the current juncture, and that the message from the recent stabilization was that deleveraging in perpetual futures was likely behind them. The October crash resulted in over 19 billion leveraged positions being wiped out from the crypto market.
It’s not just JP Morgan; more major players are joining the crypto bandwagon. Charles Schwab CEO Rick Wurster recently announced the firm will begin offering Bitcoin trading next year. Along with the bullish predictions, the JPMorgan analysts are comparing Bitcoin to gold.
The JP Morgan Analysts Compare Bitcoin to Gold
The analysts are comparing Bitcoin to gold; they note that the Bitcoin-to-gold volatility ratio is now below 2. It’s currently 1.8, and the reduction signifies the decreasing risk in Bitcoin investments. The analysts further noted that Bitcoin’s current market cap will increase by 67%. They also emphasized that the analysis was based on data rather than hype. Dubbing it as ‘digital gold’, JPMorgan’s Bitcoin predictions show that Bitcoin may be a safer investment to hedge against inflationary pressure as gold attracts more retail investors. Amid the increasing institutional support, Bitcoin has reclaimed the $102k level.
Bitcoin Reclaims $102k Level: What Lies Ahead for BTC?
Bitcoin turned green after reclaiming the 102k level today. Even though market indicators are still showing bearish signals, and trend reversal may occur as the fundamentals are strong for Bitcoin. The 14-day Relative Strength Index of 37 shows that a rebound may be around the corner. The major headwinds battering the crypto market right now, including the ongoing U.S government shutdown and hawkish Fed policy cuts, may change into tailwinds in the future if there is any policy shift in the above cases. Moreover, investors are optimistic about the passage of crypto-friendly legislations in the near future, with the Trump administration embracing a pro-crypto stance.