JPMorgan: Bitcoin Could Reach Around $170,000 in the Next 6 to 12 Months

BlockBeats News, November 6th, according to The Block, JPMorgan Chase analysts stated that with leverage reset and Bitcoin's volatility relative to gold improving, Bitcoin may rise to around $170,000 in the next 6 to 12 months.

Lead by Managing Director Nikolaos Panigirtzoglou, the analyst team pointed out in the report that the crypto market has retraced about 20% from recent highs, with the most significant drop occurring on October 10th when the crypto perpetual futures market saw the largest liquidation event in crypto history. A smaller liquidation event occurred again on November 3rd. The analysts stated that the November 3rd event was related to further denting investor confidence, as the Balancer protocol suffered a over $120 million exploit, once again raising concerns about protocol security in the market.

Despite two consecutive sell-offs in the market, the analysts mentioned that the Bitcoin contract deleveraging phase now appears to have largely ended. They noted that the Bitcoin perpetual futures open interest to market cap ratio has dropped back from above-average levels to historical norms over the past few weeks. A similar trend has been seen in the Ethereum market, albeit with a relatively smaller deleveraging magnitude.