Analysts at JPMorgan have suggested that bitcoin may be
oversold after recent price declines pushed it below $100K. They indicated
there is a possibility of higher prices in the coming months.
Digital
assets meet tradfi in London at the fmls25
After reaching $126K a few weeks ago, Bitcoin has undergone
a prolonged correction. Buyers appear to be waiting for a bullish reversal
signal near $100K before entering, which could push prices higher.
Bitcoin Correction Signals Potential $170K
Nikolaos Panigirtzoglou, Managing Director of Global Market
Strategy at JPMorgan, said the drop followed deleveraging in perpetual futures
and a $128 million liquidation linked to the decentralized finance protocol
Balancer.
He noted that bitcoin’s open interest was not substantially
affected and has returned to its 2024 average, indicating continued market
interest, as reported by Bitcoin.com.
Panigirtzoglou also compared bitcoin to gold. He said
volatility measures suggest bitcoin remains undervalued. While it was $36K
above gold at the end of last year, it is now roughly $68K below. Based on
this, he estimated a fair value of around $170K, implying potential upside.
Resistance Holds, Gold Short-Term Uncertain
Gold has been consolidating between 3,900 and 4,000 since
last week. Recent comments from Fed Chair Jerome Powell have not given the
market a clear direction.
Strong U.S. economic data could weigh on the metal, while
weaker data may offer support. Resistance is near 4,020, with potential support
around 3,960. In the medium term, gold’s
uptrend could continue if real yields decline, but short-term movement
remains uncertain.
Bitcoin is massively undervalued. pic.twitter.com/qaCR9grUIO
— Quinten | 048.eth (@QuintenFrancois) October 31, 2025
Dollar Strength Weighs on Bitcoin Correlation
Jorge Schnura, President of Keyrock Asset and Wealth
Management, noted that the recent rebound in the U.S. Dollar Index has become a
key bearish factor for bitcoin.
He explained that dollar strength, driven by
cautious signals from the Federal Reserve, tends to draw capital away from risk
assets.
Schnura added that bitcoin’s correlation with gold has
turned negative, showing it now behaves more like a speculative asset than a
safe haven.
While gold continues to attract investors during uncertainty,
bitcoin remains highly sensitive to global liquidity and market sentiment.
Bitcoin Adoption Rises Amid Institutional Shift
Other analysts have expressed similar views to Panigirtzoglou
. Jordi Visser, former president of Weiss Multi-Strategy Advisers, said recent
price movements reflect a gradual transfer of coins from early holders to
institutional investors, calling it a “silent IPO.”
He suggested this process
could continue until prices stabilize under institutional ownership.
Bitcoin remains a high-risk asset with volatile prices.
However, adoption is rising, and regulatory frameworks are developing. These
factors may make the asset more attractive to institutions that have not yet
entered the market.
This article was written by Tareq Sikder at www.financemagnates.com.
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