The divergence in gold encryption: JPMorgan claims Bitcoin could reach 170,000, while Galaxy has pessimistically revised it down to 120,000 USD.

There are divergent expectations regarding the price of Bitcoin across various sectors. Wall Street giant JPMorgan believes that as the contract market clears leverage, Bitcoin is expected to reach $170,000 within six months to a year; however, crypto institution Galaxy Digital has downgraded its year-end forecast to $120,000, expressing concerns that institutional supply and demand and capital diversion may suppress market momentum.

Wall Street bullish: JPMorgan optimistic about Bitcoin reaching $170,000

JPMorgan's analyst team pointed out that after Bitcoin experienced the largest perpetual contract liquidation in history on October 10 and a slight clearing in early November, the market's deleveraging cycle has largely come to an end:

The open interest of Bitcoin perpetual contracts has returned to a normal level relative to market value, while there is a similar but less significant situation in the Ethereum market, indicating that leveraged speculative funds have been cleared out.

Analysts previously revealed that the gold pricing model based on volatility shows that Bitcoin's current market value is still relatively undervalued.

The team calculates that the volatility of Bitcoin against gold has decreased to 1.8, meaning that Bitcoin only has 1.8 times the capital risk demand compared to gold. If we compare it to the private sector investment scale in gold, which is about 6.2 trillion dollars, Bitcoin's market value should increase by 67%, corresponding to a theoretical price of about 170,000 dollars, which is expected to happen within the next 6 to 12 months.

Encryption institutions are cautious: Galaxy lowers Bitcoin's year-end target price to $120,000.

In contrast, the encryption institution Galaxy Digital has a more conservative outlook on the market. Research director Alex Thorn stated that Bitcoin has entered a mature phase, with market dominance shifting from retail investors to institutions. The decrease in volatility, the absorption of supply by ETFs, and heavy selling pressure from whales have slowed the upward momentum of prices.

Galaxy has lowered its target price for the end of 2025 from $185,000 to $120,000, citing reasons including:

Long-term holders sell-off: Recently, approximately $50 billion is flowing from ancient wallets to institutions.

ETF fund outflows and declining liquidity: trading depth has declined, retail participation has decreased, and the market appears weak.

Funds are flowing into AI and gold: AI data centers and tech stocks are attracting capital, while gold has become a safe-haven asset, diluting the demand for Bitcoin.

Galaxy emphasized: “If Bitcoin can truly hold the $100,000 barrier, the bull market structure still exists, but the rise will slow down.”

( Bitcoin fell below 100,000 USD: market is in extreme fear, CryptoQuant warns it may continue to explore the 72,000 range )

From Frenzy to Maturity: The Bitcoin Behind the Discrepancies

Bitwise CEO Hunter Horsley described this as “a notable snapshot for 2025,” where traditional financial institutions and encryption companies hold differing opinions. This divergence indicates that Bitcoin appears to be transitioning from a “speculative asset” to “institutional favor.”

Currently, Bitcoin is at the intersection of structural growth and emotional contraction, and the two opposing viewpoints will undoubtedly continue to influence price fluctuations.

(Bitcoin Enters the Institutional Dominance Era: CryptoQuant Analyzes Strong Capital Inflows but Reasons for Price Stagnation )

This article discusses the divergence in encryption trends: JPMorgan claims Bitcoin could reach 170,000, while Galaxy has pessimistically revised it down to 120,000. It first appeared in Chain News ABMedia.