- JPMorgan says Bitcoin is undervalued by $68K and now more attractive than gold.
- BTC slips below $101K as job cuts, weak stocks, and ETF outflows weigh on sentiment.
- Fed rate cut odds rise to 69%, but uncertainty keeps Bitcoin near key $100K level.
Bitcoin wavered below $101,000 on Thursday, slipping 2.4% as risk assets broadly declined.
The world’s largest cryptocurrency mirrored weakness in US equities, with both the S&P 500 and Nasdaq 100 moving lower amid renewed concerns over the economy and labor market.
Fresh data from employment firm Challenger, Gray & Christmas, revealed more than 153,000 job cuts in October, which is the highest for that month since 2003.
“October’s pace of job cutting was much higher than average for the month,” said Andy Challenger, the firm’s chief revenue officer.
The latest figures added to investor unease, particularly as the ongoing US government shutdown has delayed official employment reports. Analysts suggested the grim data could pressure the Federal Reserve to deliver more rate cuts to support the economy.
“The economy may need more interest-rate cuts from the Federal Reserve,” trading analysis firm The Kobeissi Letter wrote on X, calling the current environment “a new era of monetary policy.”
However, not all market observers are convinced the Fed will move again in December.
Singapore-based trading firm QCP Capital cautioned that a rate cut at the upcoming meeting is “not guaranteed,” noting that markets are pricing only 60–65% odds of a follow-up move.
According to CME Group’s FedWatch Tool, investors currently assign a 69% probability to a 0.25% reduction in December.
A prolonged policy pause, QCP added, could keep the US dollar firm and credit conditions tight — factors that typically weigh on Bitcoin and other risk-sensitive assets.
Institutional outflows pressure Bitcoin sentiment
Beyond macroeconomic concerns, Bitcoin also faces headwinds from waning institutional demand.
QCP Capital pointed to continued outflows from US spot Bitcoin exchange-traded funds (ETFs), which have totaled nearly $900 million over the first three days of the week.
The firm described the $100,000 price level as a key “psychological threshold,” suggesting that any stabilization in ETF flows could quickly shift sentiment — provided no new macro shocks emerge.
Market participants have maintained a cautious tone, with many traders eyeing a potential retracement toward the open “gap” in CME Group’s Bitcoin futures near $92,000 as a possible support level.
Despite the short-term weakness, analysts at JPMorgan see a longer-term opportunity in the recent decline.
JPMorgan says Bitcoin now undervalued relative to gold
In a note quoted by MarketWatch, JPMorgan analyst Nikolaos Panigirtzoglou and his team argued that Bitcoin is now more attractive than gold following its latest pullback.
The bank’s research suggested that the cryptocurrency had previously been “$36,000 too high compared with gold” at the end of last year but is now “around $68,000 too low.”
The shift marks a notable change in tone from the investment bank, which has historically viewed Bitcoin as a speculative asset.
The analysts indicated that Bitcoin’s relative undervaluation could make it appealing to investors seeking alternatives to traditional safe-haven assets.
While institutional outflows have dampened momentum in recent weeks, JPMorgan’s assessment provides a bullish counterpoint, highlighting that the cryptocurrency may have entered oversold territory compared with its long-term benchmarks.
As Bitcoin continues to trade around the $100,000 mark, market participants will be watching whether renewed institutional interest or dovish shifts in monetary policy can reignite the cryptocurrency’s rally in the weeks ahead.
