Bitcoin may surge to nearly $170,000 in the next six to twelve months as market leverage resets and volatility improves against gold, according to JPMorgan analysts led by Nikolaos Panigirtzoglou. The bank noted that the crypto market recently corrected by about 20%, following major liquidations in perpetual futures—the largest in crypto history—yet the deleveraging phase now appears largely complete.

Analysts highlighted that the ratio of open interest in bitcoin futures to market capitalization has returned to normal levels, signaling market stabilization. Despite minor redemptions in exchange-traded funds, overall investor activity remains steady. Ethereum has shown similar patterns, though with less pronounced effects.

The report added that rising gold volatility has made Bitcoin more attractive on a risk-adjusted basis. JPMorgan estimates Bitcoin’s fair value at around $170,000, reflecting a potential 67% increase from current levels near $103,000. The bank believes this shift underscores renewed investor confidence in the crypto market’s long-term outlook.