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#JPMorgan Sees $94K $BTC Support With $170K Target Intact

JPMorgan analysts have identified $94,000 as a support level for #Bitcoin, suggesting minimal downside risk from current price levels around $102,300. The investment bank's research team, led by managing director Nikolaos Panigirtzoglou, released their assessment on Wednesday based on rising production costs for miners.

The estimated production cost for $BTC has climbed to approximately $94,000 from a prior estimate of $92,000, driven by sharp increases in network difficulty over recent months. Mining difficulty measures the computing power required to mine blocks, and its steep rise has pushed production costs higher. The ratio of Bitcoin's price to its production cost currently sits just above 1.0, near the lower end of its historical range.

Production costs have historically functioned as a floor price for $BTC, meaning the current $94,000 estimate implies limited downside from present levels. The analysts noted that this cost basis has empirically acted as support throughout Bitcoin's trading history. Current market conditions place the cryptocurrency only moderately above this threshold.

JPMorgan maintained its six- to 12-month upside projection of roughly $170,000 based on volatility-adjusted comparisons to gold. The analysts said #Bitcoin currently consumes around 1.8x more risk capital than gold relative to market size. Bitcoin's market capitalization of approximately $2.1 trillion would need to rise about 67% to reach parity with private-sector gold investment.