Bitcoin Price Craters to $88,000, But JPMorgan Maintains $170,000 Target
Bitcoin dropped to $88,000, yet JPMorgan retains its long-term $170,000 price target based on its gold-linked model.Summary
Bitcoin's price fell to the $88,000 range on Friday, marking a 4% drop over 24 hours. Despite this dip, JPMorgan remains bullish, maintaining its volatility-adjusted target of $170,000 for Bitcoin over the next six to twelve months, based on its gold-linked model.
JPMorgan views MicroStrategy's (MSTR) financial health, specifically its mNAV ratio above 1.0 and its substantial cash reserve, as encouraging, suggesting MSTR is unlikely to face forced selling of its 650,000 BTC holdings. The bank now estimates Bitcoin's production cost at $90,000, down from $94,000, due to falling hashrates from high-cost miners exiting the market.
Market caution is also evident through six consecutive weeks of net outflows from BlackRock’s IBIT ETF. Analysts suggest Bitcoin's next major move hinges on MicroStrategy's stability. Furthermore, an upcoming MSCI index decision in January could act as a catalyst for a rally.
(Source：Bitcoin Magazine)