Bitcoin Price Prediction: Does JPMorgan’s $165K Forecast Still Hold After Friday’s Pullback?

Bitcoin reached an all-time high (ATH) of $126,080 on October 6, as the so-called “debasement trade” narrative fueled a frenzy of institutional investment. Around the same time, JPMorgan predicted that Bitcoin could reach $165,000 by the end of 2025, saying that it’s currently “undervalued” compared to gold.

But after Friday’s crypto market crash, in which Bitcoin dipped below $109,000, does the idea of Bitcoin as a hedge against macroeconomic risks still hold, or is it now showing signs of being another high-beta speculative asset?

Bitcoin price predictions remain bullish for the market-leading cryptocurrency, driven by its ability to stay above key structural levels despite the crash. Additionally, gold surpassed $4,200 an ounce for the first time ever on Wednesday, reflecting strong demand for hard assets outside of government control.

While the outlook for Bitcoin appears bullish, seasoned crypto natives are well aware of the potential for larger returns through Bitcoin-related altcoins. One project gaining serious recognition right now is Bitcoin Hyper, a new Bitcoin Layer 2 that has raised over $23 million in its presale. 

Bitcoin’s “Debasement Trade” Narrative Still Has Room to Run

A research paper led by JPMorgan analysts suggested that Bitcoin is undervalued compared to gold, concluding that BTC could reach as high as $165,000 to stay in parity, based on volatility-adjusted comparisons. However, this was published when Bitcoin was rising in tandem with waning confidence in the US Dollar and growing concerns about global political stability. Has its role changed after the recent flash crash? 

In a recent interview with Decrypt, Pepperstone research strategist Dilin Wu outlined a potential scenario where BTC could lose its safe-haven status, but notes that without this, it is likely to remain fixated as a debasement trade.

 “If real rates climb significantly and stay high, the dollar strengthens long-term, or there’s a clear outflow of institutional funds – such as large ETF withdrawals – Bitcoin’s role as a debasement hedge would be reevaluated,” Wu said, adding, “Absent these conditions, Bitcoin’s upward momentum remains very much intact.”

And so given the anticipation of interest rate cuts and a weakening dollar, it appears that Bitcoin remains a viable hedge against macroeconomic risk.

Meanwhile, Elon Musk, the world’s richest man, made headlines yesterday by writing on X that “Bitcoin is based on energy,” adding that governments “can issue fake fiat currency,” but it’s “impossible to fake energy.”

 Not only does this underscore Bitcoin’s key role in the debasement trade, but it suggests Musk may be considering a potential BTC purchase, which could boost bullish market sentiment.

Bitcoin’s scarcity-driven design, combined with a strong, borderless infrastructure and institutional interest, creates a unique setup that’s hard to find elsewhere, even in gold. 

Options Market Hints at BTC Move Toward $130,000

Analyst Crypto Seth noted that after Friday’s flash crash, the Bitcoin options market shows a premium cluster between $115,000 and $130,000. He says this indicates that “investors interpret the pullback as a leverage reset rather than a shift in trend.”

Generally, options market liquidity suggests short-term moves, possibly indicating that the rally to between $115,000 and $130,000 could occur within the next few weeks, paving the way for BTC to rally toward JPMorgan’s $165,000 target before the end of the year.

With that in mind, it seems that there’s real potential for Bitcoin to gain momentum in the coming weeks and possibly hit new highs. And if that happens, it could open up new growth opportunities for ecosystem tokens as liquidity shifts – that’s where Bitcoin Hyper comes in.

Could Bitcoin L2 Bitcoin Hyper Outperform as Bitcoin Rises?

One major issue Bitcoin currently faces is a decline in network activity, with the number of monthly active users dropping from a peak of 26 million in 2024 to 21 million in September 2025.

 One reason for this could be the limited speed and functionality of the Bitcoin network, which can handle only about seven transactions per second and is mainly restricted to sending and receiving operations.

Bitcoin Hyper is developing a Bitcoin Layer 2 to address these issues directly, aiming to provide infrastructure capable of processing thousands of TPS and supporting smart contracts, without sacrificing the security guarantees of the L1.

 Its goal is to unlock new use cases on Bitcoin, such as DeFi, payments, meme coins, and RWAs, which could attract more users, increase liquidity, and ultimately solidify Bitcoin as a leader in financial technology.

 The project is gaining significant attention during its ongoing presale, with Crypto Tech Gaming recently calling it the best altcoin for 2025.

 Currently, HYPER is holding a presale, having raised $23.7 million to date. Approximately $200,000 of that amount came in over the past 24 hours, indicating strong momentum. 

With such high investor interest and a promising use case, everything seems aligned for HYPER to surge once it hits exchanges, and it could well outperform BTC due to its lower market cap.

Nikolay Kolev

Nikolay is a cryptocurrency analyst and market writer with years of experience tracking digital asset trends and emerging blockchain technologies. A long-time crypto enthusiast, he actively trades across major exchanges and specializes in identifying early-stage projects and meme tokens. His analysis combines technical insight with a strategic, long-term investment perspective.