JPMorgan Chase Called $94,000 Level Support for Bitcoin due to Mining Costs

• Analysts at JPMorgan Chase believe that the support level for bitcoin is $94,000.
• This opinion is based on the ratio of the asset’s price to the cost of mining.
• At the same time, the experts retained their forecast of $170,000 for the first cryptocurrency.

Analysts at JPMorgan Chase said that bitcoin has “very limited” potential to decline from current levels, as its estimated production cost has risen to around $94,000, which has historically served as price support. This is stated in the material of The Block with reference to the statement of JPMorgan Chase.

The note, prepared by a team led by managing director Nikolaos Panigirtzoglou, notes that over the past two months, a sharp increase in the complexity of the bitcoin network has increased mining costs:

Experts stressed that the ratio of an asset’s market price to its cost of production is now just above 1.0, near the bottom of the historical range.

At the same time, JPMorgan Chase maintained its 6-12-month growth forecast to $170,000, which is based on a “volatility-adjusted comparison to gold.”

The bank estimates that bitcoin consumes about 1.8 times more risk capital than gold, and its $2.1 trillion market capitalization needs to grow by another 67%, “implying a theoretical bitcoin price of close to $170,000” to reach parity with the $6.2 trillion in private gold investments (ETFs, bars, and coins).

In a previous analysis last month, JPMorgan analysts considered the first cryptocurrency to be significantly undervalued relative to gold, giving it the potential to move to $165,000 by the end of the year.

However, Panigirtzoglou admitted that “given the recent liquidations and given how negative sentiment is at the moment, it would not be realistic to expect this price target by year’s end.”

In August, the bank predicted a move to $126,000, and on October 6, bitcoin set a new all-time high of over $126,200 before the market experienced a record wave of liquidations on October 10.

As a reminder, Standard Chartered analysts expect the asset to grow to $200,000 by the end of 2025, noting that halving-based forecasting models are “no longer relevant” due to the impact of ETFs and institutional demand.

Meanwhile, Canary Capital CEO Steven McClurg predicted that the price of the first cryptocurrency would rise to $150,000, specifying that demand from large players is the key driver of growth.

In addition, Anthony Scaramucci, founder of SkyBridge Capital, said that by the end of 2025, bitcoin could be trading in the range of $180,000-$200,000, also relying on institutional demand pressure.

Network economist Timothy Peterson expects the asset to reach $160,000 by Christmas, stressing that the August drop could be the basis for new growth. The analyst compared the current market cycle to 2017.

Tephra Digital experts predict that bitcoin will rise to $167,000-$185,000 at the end of 2025 or in the first half of 2026. Their prediction is based on the asset’s correlation with gold and the M2 money supply, which they believe points to medium-term growth.

Entrepreneur and author Robert Kiyosaki also expects the first cryptocurrency to reach $200,000 by the end of 2025, while announcing a significant increase in his own investment in the first cryptocurrency and emphasizing the role of psychology in financial success.

At the same time, on the night of 14 November, the bitcoin rate dropped below $96,000, and the volume of liquidations exceeded $1.1 billion overnight.