Analysts at JPMorgan have suggested that bitcoin may be oversold after recent price declines pushed it below $100K. They indicated there is a possibility of higher prices in the coming months.

Digital assets meet tradfi in London at the fmls25

After reaching $126K a few weeks ago, Bitcoin has undergone a prolonged correction. Buyers appear to be waiting for a bullish reversal signal near $100K before entering, which could push prices higher.

Bitcoin Correction Signals Potential $170K

Nikolaos Panigirtzoglou, Managing Director of Global Market Strategy at JPMorgan, said the drop followed deleveraging in perpetual futures and a $128 million liquidation linked to the decentralized finance protocol Balancer.

He noted that bitcoin’s open interest was not substantially affected and has returned to its 2024 average, indicating continued market interest, as reported by Bitcoin.com.

[#highlighted-links#]

Panigirtzoglou also compared bitcoin to gold. He said volatility measures suggest bitcoin remains undervalued. While it was $36K above gold at the end of last year, it is now roughly $68K below. Based on this, he estimated a fair value of around $170K, implying potential upside.

Resistance Holds, Gold Short-Term Uncertain

Gold has been consolidating between 3,900 and 4,000 since last week. Recent comments from Fed Chair Jerome Powell have not given the market a clear direction.

Strong U.S. economic data could weigh on the metal, while weaker data may offer support. Resistance is near 4,020, with potential support around 3,960. In the medium term, gold’s uptrend could continue if real yields decline, but short-term movement remains uncertain.

Bitcoin is massively undervalued. pic.twitter.com/qaCR9grUIO

— Quinten | 048.eth (@QuintenFrancois) October 31, 2025

Dollar Strength Weighs on Bitcoin Correlation

Jorge Schnura, President of Keyrock Asset and Wealth Management, noted that the recent rebound in the U.S. Dollar Index has become a key bearish factor for bitcoin.

He explained that dollar strength, driven by cautious signals from the Federal Reserve, tends to draw capital away from risk assets.

Schnura added that bitcoin’s correlation with gold has turned negative, showing it now behaves more like a speculative asset than a safe haven.

While gold continues to attract investors during uncertainty, bitcoin remains highly sensitive to global liquidity and market sentiment.

Bitcoin Adoption Rises Amid Institutional Shift

Other analysts have expressed similar views to Panigirtzoglou . Jordi Visser, former president of Weiss Multi-Strategy Advisers, said recent price movements reflect a gradual transfer of coins from early holders to institutional investors, calling it a “silent IPO.”

He suggested this process could continue until prices stabilize under institutional ownership.

Bitcoin remains a high-risk asset with volatile prices. However, adoption is rising, and regulatory frameworks are developing. These factors may make the asset more attractive to institutions that have not yet entered the market.