JPMorgan Says Bitcoin Undervalued Amid Record Low Volatility

JPMorgan analysts have identified Bitcoin as significantly undervalued relative to gold, driven by a historic decline in its six-month volatility from nearly 60% to a record low of about 30%. This volatility compression narrows Bitcoin's risk-adjusted gap with gold, making it only twice as volatile and thus more attractive to institutional investors, who are increasingly allocating capital into Bitcoin, with corporate treasuries now holding over 6% of its total supply. Based on volatility-adjusted market capitalization, JPMorgan estimates Bitcoin's fair value at approximately $126,000, about 13% higher than its current price near $113,000, implying an undervaluation of roughly $16,000. The bank compares this trend to the post-2008 bond market, where quantitative easing dampened volatility by locking assets into balance sheets, and cites growing passive inflows driven by Bitcoin's inclusion in equity indices and corporate adoption. Competition among corporate treasuries for Bitcoin holdings is intensifying, with new entrants raising significant capital and aiming to rival existing major holders. Overall, these developments signal Bitcoin's maturation as a financial asset and a compelling long-term investment opportunity amid its growing integration into traditional financial markets.