Bitcoin is being flagged as undervalued in comparison to gold, says a recent report from JPMorgan. The Wall Street giant noted that the cryptocurrency’s volatility has sunk to unprecedented lows, with its six-month rolling volatility plummeting from nearly 60% earlier this year to about 30% now. This is a significant convergence with gold, traditionally seen as a less volatile asset, with Bitcoin’s volatility now just double that of gold—the narrowest this gap has ever been. For more on Bitcoin’s evolving stability, see Bitcoin’s Volatility Drops as It Matures, Setting the Stage for Bitcoin Hyper ($HYPER) Presale to Explode.
Market Dynamics and Institutional Interest
JPMorgan’s insights reveal a shifting landscape where Bitcoin is gaining traction as an appealing option for institutional investors. The bank’s analysis suggests that, on a volatility-adjusted basis, Bitcoin’s market capitalization needs a 13% boost to align with gold’s $5 trillion private investment market. This implies Bitcoin’s price could ascend to around $126,000, marking it as currently undervalued by about $16,000 compared to gold.
Nikolaos Panigirtzoglou and his team of analysts at JPMorgan link this trend to ramped-up purchases by corporate treasuries. Interestingly, these treasuries now control over 6% of Bitcoin’s total supply, mirroring how central bank quantitative easing once tempered bond market volatility. The analysts point out that corporate adoption is accelerating through equity index inclusion, which is drawing passive capital inflows.
Corporate Moves and Market Implications
Significant corporate actions are bolstering this narrative. Metaplanet’s upgrade into FTSE Russell’s mid-cap category and inclusion in global benchmarks exemplifies this trend. Meanwhile, Nasdaq-listed Kindly MD is making waves with a colossal $5 billion capital raise, following a $679 million Bitcoin acquisition.
Moreover, new players like Adam Back’s firm are entering the scene, aiming to challenge MARA Holdings’ treasury position, which trails only Michael Saylor’s Strategy (MSTR) in size. These developments signal a growing corporate appetite for Bitcoin, reinforcing its potential as a primary asset in institutional portfolios. For insights into potential price movements, consider our analysis on why Bitcoin Price In A Trend Shift? Here’s Why $118K Might Be Vital For A Bullish Return.
A Look to the Future
Despite the bullish outlook painted by JPMorgan, questions linger about the sustainability of Bitcoin’s newfound stability. Can this trend continue amidst the inherent volatility of the crypto market? With corporate treasuries increasing their stake in Bitcoin, the landscape of financial assets is undoubtedly evolving.
As we move forward in 2025, the balance between Bitcoin and traditional assets like gold will continue to captivate market watchers. The potential for Bitcoin to reach JPMorgan’s projected $126,000 is enticing, yet the road ahead is fraught with uncertainties. With the crypto market’s history of sharp ups and downs, investors will be keeping a close eye on how these dynamics play out. The interplay between innovation and market forces will determine whether Bitcoin can truly solidify its place alongside gold as a cornerstone of institutional portfolios.
Source
This article is based on: Bitcoin Undervalued Versus Gold as Volatility Collapses, JPMorgan Says
Further Reading
Deepen your understanding with these related articles:
- Was $124K the top? Bitcoin's price peak signals tell a different story
- From Tokyo to Crypto: Metaplanet’s $2B $BTC Bet and the Rise of Bitcoin Hyper ($HYPER)
- Strategy buys $357M in Bitcoin as price drops to $112K
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
