Despite Bitcoin's (CRYPTO:$BTC) recent decline of more than 30%, analysts at Wall Street bank JPMorgan Chase (NYSE:$JPM) have maintained their $170,000 U.S. price target on the largest cryptocurrency by market capitalization.
Specifically, JPMorgan has reiterated its volatility-adjusted Bitcoin-versus-gold model that points to the price of BTC reaching $170,000 U.S. over the next 12 months.
Bitcoin is currently trading around $91,000 U.S., having fallen from an all-time high of $126,300 U.S. at the start of October.
Crypto analysts at JPMorgan Chase say that Bitcoin's recent pullback has largely been due to renewed pressure on the mining of digital assets in China.
The price of BTC has also been pressured by a global decline in Bitcoin mining, with some crypto miners selling their BTC holdings to help cover their high energy costs.
JPMorgan Chase has reduced its Bitcoin production-cost estimate to $90,000 U.S. from $94,000 U.S. after recent drops in the hashrate and mining difficulty level.
The hashrate is the network's total computing power devoted to mining and validating cryptocurrencies on a proof-of-work blockchain. It's a proxy for mining competition and difficulty.
The bank concludes its Bitcoin outlook by stating that the deleveraging of crypto assets that began on Oct. 10 when heavily indebted investors were forced to sell as the price dropped now appears to be mostly done, suggesting that a bottom in crypto prices might not be far off.
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