JPMorgan analysts have projected that Bitcoin could climb to around $170,000 within the next six to twelve months, citing a completed deleveraging phase in perpetual futures and improving relative volatility compared to gold.
The forecast, shared in a Wednesday note led by Nikolaos Panigirtzoglou, suggests that the recent 20% correction in crypto markets may have reset excessive leverage, setting the stage for a renewed uptrend.
Deleveraging Phase May Be Over
According to JPMorgan, the largest-ever liquidations in perpetual futures occurred on October 10, marking a major washout of leveraged positions. This was followed by smaller but still notable liquidations on November 3, signaling that much of the speculative excess in crypto derivatives has now been cleared.
JPMorgan predicting bitcoin at $170k in next 6-12mo, says perp deleveraging is behind us and that's it undervalued vs gold historically, which implies "significant upside next 6-12mo" pic.twitter.com/CaVVWH6L42
— Eric Balchunas (@EricBalchunas) November 6, 2025
The analysts view this reset as healthy for market structure, arguing that it positions Bitcoin for “significant upside” over the coming year.
Comparing Bitcoin and Gold
JPMorgan also emphasized Bitcoin’s undervaluation relative to gold based on historical volatility ratios. The firm believes this divergence implies substantial potential for appreciation as institutional flows return and volatility normalizes.
“Bitcoin remains historically cheap versus gold,” the report noted, suggesting that an improved risk-adjusted outlook could drive BTC prices materially higher by mid-2026.
Market Confidence Still Recovering
The report comes shortly after the $120 million Balancer exploit on November 3, which temporarily reignited security concerns in the decentralized finance sector. Still, JPMorgan maintains that broader investor confidence is improving as the market stabilizes from the recent deleveraging wave.
If the bank’s projections hold, Bitcoin could rally roughly 70% from current levels, potentially revisiting the aggressive momentum seen in prior recovery phases.
