Bitcoin ‘$68K too low’ versus gold says JPMorgan as BTC, stocks dip again

2 hours ago 2

Key points:

Bitcoin joins US stocks in erasing its latest gains as market nerves heighten over US economic cues.
Fed interest rate cut odds slowly increase, but analysis says that risk assets could get a nasty surprise.
JPMorgan now sees Bitcoin as undervalued against gold.

Bitcoin (BTC) wobbled below $102,000 at Thursday’s Wall Street open as US stocks dipped on macro data.

BTC price trends down with stocks

Data from Cointelegraph Markets Pro and TradingView showed BTC price losses nearing 2% on the day.

BTC/USD joined the S&P 500 and Nasdaq 100 in heading downhill, with equities reacting to news of job cuts and surging US household debt.

A report from employment firm Challenger, Gray & Christmas confirmed over 153,000 job cuts last month — the highest October total since 2003.

“October’s pace of job cutting was much higher than average for the month,” chief revenue officer Andy Challenger commented.

Amid a lack of official employment data due to the ongoing government shutdown, the numbers resonated, with trading resource The Kobeissi Letter suggesting that the economy “may need more” interest-rate cuts from the Federal Reserve.

“A new era of monetary policy has arrived,” it told X followers on Wednesday on the Fed’s easing of financial conditions.

At the same time, trading company QCP Capital noted that a rate cut at the Fed’s December meeting — a key tailwind for crypto and risk assets — was not guaranteed.

“Markets are now pricing 60–65% odds of a follow-up move, but the longer the blackout drags on, the more comfortable policymakers may become with pausing, which in turn keeps the dollar firm and credit conditions tight,” it wrote in its latest “Asia Color” market update.

Data from CME Group’s FedWatch Tool put the odds of a 0.25% cut in December at 69% at the time of writing.

JPMorgan switches sides on Bitcoin vs. gold

Continuing, QCP argued that for Bitcoin to enjoy a lasting turnaround after multimonth lows, institutional buying needed to return.

It referenced outflows from the US spot Bitcoin exchange-traded funds (ETFs), which totaled nearly $900 million over the first three days of the week.

“The $100,000 psychological threshold now represents the key line in the sand, and any stabilization in ETF flows could quickly flip sentiment, assuming no fresh macro shock emerges,” it summarized.

As Cointelegraph reported, traders maintained sub-$100,000 BTC price targets throughout the week, with consensus favoring the open “gap” in CME Group’s Bitcoin futures near $92,000 as a floor.

Bullish cues on the day came from a report by JPMorgan, in which analysts described BTC as more attractive than gold after its latest dip.

“Having been $36,000 too high compared [with] gold at the end of last year, Bitcoin is now around $68,000 too low,” lead analyst Nikolaos Panigirtzoglou wrote, quoted by MarketWatch and others.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Read Entire Article