Key Highlights Bitcoin ETF inflows signal growing investor confidence Gold remains strong but may drive investors to Bitcoin Theoretical Bitcoin value hits 165000 based on trends Bitcoin Shows Potential to Reach 165000 Compared to Gold Bitcoin is significantly undervalued relative to gold, suggesting potential growth to $165,000 by the end of 2025, according to a report from JPMorgan Chase. ETF Capital Inflows Highlight Growing Investor Interest JPMorgan Chase notes that capital inflows into gold and Bitcoin ETFs have surged in recent months. Market data supports this trend. 1. Gold ETFs have seen weekly net inflows between $1.8 billion and $4.2 billion since late August 2025 2. In September 2025, gold ETFs recorded approximately $13.6 billion in inflows. Spot Bitcoin ETFs saw net inflows of $3.53 billion during the same period. This activity suggests that Bitcoin may be subtly undervalued relative to gold. JPMorgan Chase reports that Bitcoin's volatility index against gold has fallen below 2, meaning Bitcoin could attract nearly twice the risk capital of gold. Theoretical Valuation and Market Correlation Taking this into account, Bitcoin’s market capitalization would need to grow by 42% to match $6 billion of private gold investment, implying a theoretical valuation of $165,000. However, the report notes that Bitcoin was overvalued at the end of 2024. The two assets remain correlated in the short term (30 days) and long term (365 days), while the 90-day moving average still indicates an inverse correlation. Charts show gold has outperformed Bitcoin since mid-August 2025. Ahead of market fluctuations, gold hit a new all-time high, while Bitcoin briefly dipped. As Bitcoin recovered, gold became a less attractive investment, increasing demand for the world’s first cryptocurrency, JPMorgan Chase emphasized.
