JPMorgan Bullish on Bitcoin Despite Market Crash

JPMorgan analysts, led by Managing Director Nikolaos Panigirtzoglou, have issued a compelling bullish case for Bitcoin’s price trajectory. In research notes shared by Bloomberg Senior ETF analyst Eric Balchunas, the bank’s team argues that Bitcoin’s current market value around $102,400 is significantly undervalued compared to gold. Their analysis suggests that once leverage conditions normalize, the leading cryptocurrency could climb toward $170,000 within the next 6-12 months, representing a substantial 65.9% increase from current levels.

The JPMorgan team emphasizes that the broader crypto market has already undergone a near 20% correction from previous highs, primarily driven by massive liquidations in perpetual futures contracts. Despite this widespread volatility and market downturn, the analysts remain steadfast in their optimism, viewing these liquidation events as necessary purges that have flushed out excessive speculation from the market.

According to the JPMorgan analysis, perpetual deleveraging has finally come to an end, opening a potential path for more stable institutional accumulation. The bank suggests that Bitcoin’s value could recover and strengthen considerably from now through October 2026, supporting their bullish projection of a possible rally to new all-time highs.

The crypto market experienced unprecedented turbulence in recent months, with the largest liquidation wave occurring on October 10. This event was triggered by US President Donald Trump’s announcement of aggressive tariffs against China, which caused record liquidations that wiped out billions of dollars in leveraged positions across exchanges—marking the largest such event in crypto history.

Before the market could recover, another devastating liquidation event struck on November 3, deepening the correction after a $120 million exploit on market maker Balancer reignited fears over DeFi protocol security. These consecutive shocks left the crypto market with limited room for recovery, testing investor resilience and pushing prices downward despite underlying fundamental strength.

JPMorgan analysts interpret these dramatic events as market-clearing mechanisms rather than indicators of structural weakness. They believe the extensive deleveraging has created healthier market conditions by eliminating excessive speculation, potentially setting the stage for more sustainable growth driven by institutional participation rather than retail leverage.

Crypto market analyst Sulianto Indria Putra’s latest technical analysis echoes JPMorgan’s optimistic predictions for Bitcoin’s price outlook. His examination of Bitcoin’s weekly chart reveals that the 50-week Exponential Moving Average (EMA) continues to act as a strong cyclical support level, currently positioned at approximately $100,900.

Putra highlights that each time Bitcoin has touched this EMA in past bull cycles, it has historically rebounded with strong upward momentum. With Bitcoin trading around $102,400—just above this critical support level—price action shows consolidation rather than breakdown, indicating the market is forming a higher low within an ongoing bull trend.

Based on this technical positioning, Putra maintains that despite widespread bearish sentiment and recent price declines, Bitcoin could still rally significantly to $150,000 between late 2025 and early 2026. This projection aligns with JPMorgan’s more aggressive $170,000 target, suggesting multiple analytical approaches are converging on a positive medium-term outlook for the cryptocurrency.

The consistent bullish stance from major institutional players like JPMorgan signals a significant shift in how traditional financial institutions perceive cryptocurrency market cycles. Rather than viewing recent volatility as a reason for caution, these institutions appear to see it as an opportunity for accumulation at more favorable price levels.

The comparison to gold valuation metrics represents a fundamental approach that differs from traditional crypto analysis, suggesting institutions are applying conventional asset valuation frameworks to Bitcoin. This methodological shift indicates growing maturity in how major financial players evaluate cryptocurrency investments and could pave the way for broader institutional adoption.

As the market navigates through geopolitical tensions and technical challenges, the unwavering confidence from analysts at JPMorgan and other institutions provides a counterbalance to retail investor anxiety. Their focus on long-term valuation metrics rather than short-term price movements suggests a more sophisticated understanding of cryptocurrency market dynamics that could influence broader market sentiment in the coming months.