JPMorgan highlighted the $94,000 support level for Bitcoin.

Recently, the cryptocurrency market has experienced significant price movements attracting the attention of investors. The approximately 70% increase in Bitcoin prices is supported by assessments made by JPMorgan analysts. The team led by senior manager Nikolaos Panigirtzoglou indicated that the production cost of around 94 thousand dollars for Bitcoin establishes a strong price floor.

In a note published by JPMorgan, it was stated that the ratio of the current Bitcoin price to production cost is slightly above 1, and this situation has historically been positioned in the lower band. Analysts pointed out that the sharp increases in network difficulty levels in recent months have led miners to require more computing power to produce new blocks, which has sharply increased production costs. According to this relationship, the interaction between the Bitcoin price and production cost naturally limits the downward risk of the price.

The bank emphasized that considering the Bitcoin price is currently around 102 thousand dollars, the 94 thousand dollars cost floor constitutes significant support. Additionally, JPMorgan continues to maintain an upward price forecast of approximately 170 thousand dollars over a 6-12 month period. This forecast is calculated by comparing Bitcoin to gold on a volatility-adjusted basis.

Analysts noted that Bitcoin currently consumes about 1.8 times more risk capital compared to gold, suggesting that the current 2.1 trillion dollars market value could achieve risk parity with gold with a 67% increase. According to these calculations, the theoretical Bitcoin price points to approximately 170 thousand dollars.

Investors should consider these developments, which are critical to the dynamic structure of financial markets, and shape their strategies accordingly. In addition to the 94 thousand dollars support level for Bitcoin, JPMorgan’s price forecasts provide a fundamental reference point for determining investment strategies in the upcoming period.