JPMorgan Identifies Bitcoin as Undervalued Compared to Gold
- Bitcoin undervalued due to low volatility and index inclusion.
- Potential 13% market value increase for Bitcoin.
- Institutional interest in Bitcoin rising over reduced volatility.
JPMorgan’s recent analysis highlights Bitcoin as undervalued compared to gold due to decreased volatility, suggesting greater institutional investment appeal as noted by their market strategy team led by Nikolaos Panigirtzoglou.
This assessment, indicating missed pricing, could influence institutional portfolio allocations, driving potential Bitcoin demand and impacting market valuations, though no immediate reactions have been observed from industry leaders.
JPMorgan’s latest report indicates Bitcoin is undervalued against gold due to historic low volatility, positioning it as a promising institutional investment.
This revelation may boost Bitcoin’s market value and redefine its role within institutional portfolios, signaling a notable shift in investment strategy.
Bitcoin’s Low Volatility Sparks Undervaluation Claims
JPMorgan researchers claim Bitcoin’s reduced volatility makes it undervalued when compared to gold. This assessment arises from the cryptocurrency’s rolling volatility hitting record lows in 2025.
The Global Market Strategy Team at JPMorgan, led by Nikolaos Panigirtzoglou, has evaluated Bitcoin’s potential, emphasizing its appeal amid reduced market fluctuations.
“As Bitcoin’s volatility approaches that of gold, it is now only twice that of gold, the lowest ratio in history. This trend makes Bitcoin increasingly attractive for institutional investment portfolios…” — Nikolaos Panigirtzoglou, Managing Director, Global Market Strategy, JPMorgan source.
Institutional Investors Eye Bitcoin Amidst Index Inclusion
Institutional interest is peaking as corporate treasuries hold over 6% of Bitcoin’s supply, driven by lower volatility and index inclusions like FTSE Russell.
Financial markets could witness a revaluation of Bitcoin, with JPMorgan indicating a fair price target. This could translate to a significant increase in Bitcoin’s institutional adoption.
Bitcoin’s Volatility Convergence With Gold Highlighted
JPMorgan historically compared Bitcoin with gold as a value store, but now underscores volatility convergence and direct index presence as key growth catalysts.
Data suggests a potential boost for Bitcoin, as its volatility aligns with gold’s. Such a trend could enhance institutional portfolio diversity moving forward.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
