JPMorgan analysts have dramatically raised their long-term Bitcoin price target to $266,000, even as the token trades near $65,000 amid a steady decline. The bank argues that Bitcoin has become less volatile than gold on an adjusted basis, improving its appeal as a long-term store of value.

This call contrasts sharply with recent market weakness. Bitcoin has fallen below its estimated production cost of $87,000, raising concerns of further miner exits and price drops. However, JPMorgan notes that liquidations remain moderate compared to past crashes, suggesting institutional resilience.

The bank's thesis hinges on Bitcoin’s evolving correlation with gold. If it continues to converge volatility-wise with the yellow metal, its market cap could expand to rival private gold investment—pegged at $8 trillion. That implies a price near $266,000, though analysts admit it’s unrealistic in the near term.

What comes next depends on macro trends and investor sentiment. If risk assets stabilize and confidence returns, Bitcoin may reclaim momentum. Otherwise, further downside toward $60,000 or even $40,000 remains possible.