JPMorgan Says Bitcoin Could Skyrocket to $266,000 After Major Drop

Highlights:

• JPMorgan strategist sees Bitcoin becoming more attractive than gold long-term as gold peaks.
• Bitcoin has dropped over 40% from its highs, now below $70,000 amid outflows and fear.
• Michael Burry warns of a potential further crash to the low $50,000s and a self-reinforcing death spiral.

On February 5, JPMorgan strategist Nikolaos Panigirtzoglou said gold’s strong rise is making Bitcoin look more attractive over time. He explained that gold prices are now so high that buying demand may soon slow. Meanwhile, Bitcoin has already fallen hard, so it could benefit later as investors rethink their choices.

Recently, Bitcoin’s drop has been sharp. Prices are down more than 40% from earlier highs and briefly fell to $69,000. This is well below JPMorgan’s estimated mining cost of $87,000. As a result, weaker miners have left the market, which is slowly lowering overall production costs.

At the same time, spot BTC exchange-traded funds have seen steady outflows. This shows weak confidence from both retail and institutional investors. Still, JPMorgan believes that once this negative mood fades, Bitcoin could recover and move toward $266,000.

JPMorgan Highlights Bitcoin’s Rising Hedge Role as Gold Demand Reaches Limits

JPMorgan noted that the BTC to gold volatility ratio has dropped to a record low of 1.5. This unusual move suggests Bitcoin is now less volatile compared to gold. Because of this, the bank said that once investors start seeing Bitcoin as just as attractive as gold during crises, the door to higher prices could open.

The strategist added that Bitcoin’s long-term strength depends on its role as a hedge, similar to gold. Since gold is already showing signs of hitting its buying limits, Bitcoin may step in as an alternative asset. This could appeal to investors looking for protection during economic shocks. Panigirtzoglou’s $266,000 Bitcoin target is based on one key idea. He believes Bitcoin will slowly regain investor trust and settle into a stable role as a store of value.

Michael Burry Warns BTC Could Fall Toward Low $50,000s

While JPMorgan remains positive over the long term, Michael Burry has warned about Bitcoin’s near term outlook. On Thursday, the Scion Asset Management founder shared a chart on X. It compared the current pullback with the sharp crash seen between late 2021 and mid 2022.

During that period, Bitcoin fell from about $35,000 to below $20,000. Burry pointed out similar patterns today. He compared that cycle with the recent drop from October’s high of $126,000 to nearly $70,000. Based on this, he suggested BTC could slide further, possibly into the low $50,000 range, before forming a solid bottom. Although Burry did not share an exact price target, his chart sparked fresh debate. Many are now questioning whether Bitcoin is once again following its past path.

Burry’s warning went beyond price charts. In a Substack essay published on Monday, he said Bitcoin’s drop could lead to a self-reinforcing death spiral for companies holding Bitcoin and for mining firms. He wrote that no organic use case would naturally slow or stop the decline.