Overview
Bitcoin, currently trading at $111,846.73, is regarded as undervalued in relation to gold, according to a recent study by JPMorgan. The bank’s report reveals that Bitcoin’s six-month volatility levels have significantly decreased from approximately 60% at the beginning of the year to roughly 30%, the lowest rate recorded.
Key Points
- JPMorgan claims that Bitcoin’s volatility aligns more closely with that of gold.
- Now, corporate treasuries account for over 6% of Bitcoin’s total supply, heightening institutional interest and stability in prices.
- Comparatively, Bitcoin’s market capitalization could rise by 13%, translating to a potential price surge to around $126,000, if it were to align with gold’s total investment framework.
Market Dynamics
The report emphasizes that Bitcoin’s volatility has converged towards gold’s metrics, marking the lowest historical ratio, thus enhancing its appeal as a stable asset for institutional investors. Furthermore, ongoing adoption by treasuries and passive investments from index inclusions are driving down Bitcoin’s volatility, provoking a positive outlook for future price increases.
The study highlights the competitive landscape, referencing moves by firms like Metaplanet and Kindly MD, which are pursuing significant investments in Bitcoin, thus reinforcing its market position.
