JPMorgan Predicts Bitcoin’s Path to $170,000 After Market Cleansing

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According to JPMorgan, the recent painful deleveraging in crypto markets has set the stage for a major Bitcoin rally, with a price target of $170,000 in the next year.

Analysts led by Nikolaos Panigirtzoglou noted that the market correction, which included the largest perpetual futures liquidation in history, has effectively washed out excessive leverage.

They state that open interest ratios have now returned to historical norms, indicating the sell-off pressure has subsided. With the “deleveraging in perpetual futures likely behind us,” the bank sees a clear runway for growth as volatility becomes more comparable to gold.