From “Fraud” to “Undervalued”: JPMorgan Now Says Bitcoin Is Priced Too Low

On October 2, 2025, analysts at JPMorgan published a research note claiming that Bitcoin is currently undervalued — despite trading around $118,000 at the time. The call reflects a striking shift in tone for one of Wall Street’s most influential banks.

The report, led by strategist Nikolaos Panigirtzoglou, pointed to the rising cost of mining in the wake of the April 2024 halving, when the block reward dropped from 6.25 to 3.125 BTC. With energy costs rising and hash rate near record highs, the analysts estimate that Bitcoin’s production cost now exceeds its spot price — a signal, in their view, of undervaluation.

The note also highlighted improving liquidity conditions, such as steadying open interest in Bitcoin futures and stronger stablecoin inflows, as further signs of a healthier market backdrop.

JPMorgan's positioning marks a dramatic reversal from past skepticism. CEO Jamie Dimon once called Bitcoin a “fraud” and threatened to fire employees caught trading it. Over the years, though, the firm has slowly embraced digital assets — building blockchain infrastructure, offering crypto exposure to wealth clients, and now making bullish valuations based on fundamentals.

But it’s worth noting that the bank’s definition of “value” remains narrow. Their models center on production costs and market flows — not on Bitcoin’s role in preserving purchasing power, bypassing capital controls, or enabling financial autonomy. For many around the world, those are the deeper reasons they hold Bitcoin — not what JPMorgan’s spreadsheets say.

Still, when a legacy institution as large as JPMorgan concedes that Bitcoin might be worth more than its price, it says something about how far the asset — and the conversation — has come.