‘Debasement Trade’: JPMorgan Says Retail Investors Pushing Bitcoin to $165,000

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JPMorgan projects Bitcoin could surge to $165,000 by year-end, fueled by a retail-led “debasement trade.”

The bank’s analysts state that investors are increasingly seeking alternative stores of value due to fears over government deficits, inflation, and weakening fiat currencies.

This macro shift provides the backdrop for a major valuation gap to close. JPMorgan’s analysis shows bitcoin is now undervalued by about $46,000 relative to gold on a risk-adjusted basis.

With the volatility gap between the two assets narrowing, the bank calculates that a 42% increase in Bitcoin’s market cap—reaching $165,000—would align it with the private gold market.