- JPMorgan lifts Bitcoin target to $170K, citing an end to the perpetual futures sell-off.
- Analysts say BTC futures leverage has eased, signaling a shift from correction to accumulation.
- JPMorgan allows Bitcoin and Ethereum as loan collateral as institutional adoption expands.
JPMorgan has raised its Bitcoin target to $170,000, suggesting the end of the perpetual futures sell-off and signaling a potential shift toward accumulation. The bank’s latest report indicates that the futures market has stabilized, opening the possibility for renewed investor confidence and institutional engagement.
JPMorgan Raises Bitcoin Forecast to $170,000
JPMorgan analysts said Bitcoin’s perpetual futures market has largely stabilized, ending a phase of heavy selling pressure. Strategist Nikolaos Panigirtzoglou and his team noted that open interest in Bitcoin’s perpetual contracts has normalized, pointing to reduced leverage and calmer trading conditions.
“The message from recent stabilization is that deleveraging in perpetual futures is largely behind us,” the team wrote. The report suggests a possible shift from correction to accumulation as volatility cools. JPMorgan’s revised $170,000 price target is derived from a comparative model with gold, positioning Bitcoin as a digital store of value.
The model assumes Bitcoin needs 1.8 times the risk capital of gold. With private investment in gold totaling about $6.2 trillion, Bitcoin’s market capitalization would need to rise by roughly two-thirds from its current $2.1 trillion. That expansion would align with a BTC price of around $170,000. Analysts added that Bitcoin’s volatility-adjusted fair value stands about $68,000 above its current price, pointing to potential upside in the next 6–12 months.
Institutional Adoption Strengthens Despite Market Pressure
This updated projection follows JPMorgan’s October forecast of $165,000 for Bitcoin. The firm’s confidence has grown as market conditions stabilize and institutional participation expands.
JPMorgan also announced that it will allow institutional clients to use Bitcoin and Ethereum as collateral for loans. The initiative mirrors moves by major Wall Street firms, including BlackRock, Goldman Sachs, and Morgan Stanley, who have expanded digital asset access for clients.
Despite the optimistic outlook, Bitcoin continues to trade near $103,000 amid over $2 billion in ETF outflows since early November. JPMorgan believes that while short-term headwinds persist, the completion of the futures sell-off offers room for fresh buying momentum in the months ahead.
