Bitcoin has taken a sharp nosedive, plummeting 7 percent just a day after hitting a two-year high. This sudden volatility has sent shockwaves through the broader digital asset market, with the world’s largest cryptocurrency dragging major altcoins down with it. However, despite the immediate gloom, major institutional analysts suggest the asset may be coiled for a massive long-term breakout.

A Sea of Red for Altcoins

While Bitcoin’s stumble grabbed headlines, the pain was felt even more acutely across the top 10 cryptocurrencies. Ethereum, the second-largest asset by market cap, shed 8.8 percent of its value, dipping below the $2,200 mark. The losses were even steeper for high-flying competitors like Solana, which tumbled more than 15 percent over the past day to trade under $100.

The sell-off extended to legacy tokens as well, with XRP crashing by more than 10 percent and Cardano plunging by 14 percent. This aggressive correction comes at a time of heightened anxiety for crypto enthusiasts, who are currently on the edge of their seats awaiting a pivotal regulatory decision.

The ETF Catalyst and Volatility

Market participants are looking toward the US Securities and Exchange Commission (SEC) with bated breath. In a matter of days, the regulator is expected to determine whether to approve multiple applications for spot Bitcoin exchange-traded funds (ETFs).

An approval would allow for publicly traded investment funds that track the actual value of Bitcoin, potentially opening the floodgates for institutional capital. The uncertainty surrounding this decision appears to be driving the current whip-saw price action.

J.P. Morgan Predicts Six-Figure Highs

Despite what can only be described as a “horror week” for Bitcoin—which saw prices briefly touch the $60,000 level in the German market analysis—investment banking giant J.P. Morgan remains surprisingly bullish. In a recently published study, the bank’s experts looked past the immediate downturn to forecast a potential 280 percent rally.

The analysts have set an ambitious price target of $266,000 for the cryptocurrency. While they stopped short of predicting this peak would be reached within the current calendar year, they remain convinced of the asset’s long-term trajectory.

The Digital Gold Thesis

The core of J.P. Morgan’s optimism lies in Bitcoin’s evolving role as a competitor to gold. According to their analysis, the cryptocurrency is increasingly viewed as an alternative store of value.

“The significantly better performance of gold compared to Bitcoin since October of last year, coupled with the strong increase in gold volatility, has made Bitcoin appear even more attractive than gold in the long term,” the experts noted. Their model suggests that if Bitcoin attracts capital inflows equivalent to those of the precious metal, the price ceiling is substantially higher than current levels.

Skepticism Remains

Not everyone on Wall Street shares this sunny outlook. While J.P. Morgan doubles down on a six-figure future, other prominent market watchers are sounding the alarm. Notably, star investor Michael Burry—famous for his “Big Short” bet against the housing market—has expressed deep skepticism regarding Bitcoin. Burry recently warned investors to brace for massive disruptions in the cryptocurrency space, suggesting that the current volatility might just be the beginning of a deeper correction.