Why JPMorgan Suggests Buying Bitcoin Despite Price Crash?

Gold vs BTC: JPMorgan strategist says BTC is looking more attractive at current levels than Gold for the long-term investment prospects. The suggestion comes despite veteran trader Peter Brandt and financial services firm Stifel predicting a further Bitcoin price crash.

Gold vs BTC: JPMorgan Strategist Sees Bitcoin Hitting $266,000 in Long Term

On February 5, JPMorgan global markets strategist Nikolaos Panigirtzoglou said Gold’s massive outperformance leaves Bitcoin looking more attractive over the long term.

While the Bitcoin price crash has intensified by more than 40%, a JPMorgan strategist predicts BTC could reach $266,000. He claims gold prices are reaching buy limits after a massive rally in recent months.

Bitcoin crash to $69K has pushed its price considerably below its estimated mining cost. JPMorgan estimated the average production costs at around $87K. This causes miner capitulation to push unprofitable miners out of the market and gradually lower production costs.

Also, spot Bitcoin ETFs continue to suffer outflows, suggesting negative sentiment among both retail and institutional investors.

However, JPMorgan noted that recent price action has led to the Bitcoin-to-gold volatility ratio drifting to a record low of 1.5. Once the current negative sentiment subsides, BTC will begin rallying towards 266,000.

Bold Bitcoin Price Crash Predictions by Peter Brandt and Stifel

While gold continues its massive outperformance despite 2% drop to $4850, veteran trader Peter Brandt and Stifel forecast a further Bitcoin price crash. This comes as the crypto market crashes deeper after technical and on-chain data spark bear market concerns.

Brandt has turned bearish amid the ongoing downtrend. In recent analysis, he highlighted “campaign selling” patterns causing severe corrections. His claims potential drop toward $63,800 next. Recently, Peter Brandt lowered his BTC target to $54,000.

Meanwhile, Stifel analysts predict Bitcoin price could crash to as low as $38,000. The firm based its analysis on Bitcoin’s historic crash pattern since 2010. Bitcoin tumbled 93% in 2011, 84% in 2015, 83% in 2018, and 76% in 2022. A trendline connecting these market bottoms slopes points to $38,000 as the potential depth amid the latest capitulation.