JPMorgan: Bitcoin is undervalued compared to gold, and the low liquidity innovation may attract institutional funds.

JPMorgan’s latest report points out that the volatility of Bitcoin (BTC) has dropped to historic lows, gradually making it competitive with gold. Analysts believe that this trend may attract more institutional investors and drive further price increases for Bitcoin. According to the bank’s estimates, BTC is currently undervalued by about $16,000, and if its market capitalization increases by 13%, the price could approach $126,000, comparable to the capital allocation of gold.

Fluctuation dropped to 30%, setting a new historical low

J.P. Morgan analyst Nikolaos Panigirtzoglou pointed out in a report that Bitcoin’s six-month rolling Fluctuation has dropped from nearly 60% at the beginning of the year to about 30%, setting a historical low.

A decrease in volatility means that the price fluctuation range is reduced, making it more attractive for long-term capital, especially for institutional investors with strict risk management.

JPMorgan report: “If the volatility of Bitcoin aligns with that of gold, the allocation ratio of institutional investors may converge.”

undervalued at $16,000, potential for significant upward movement

The report indicates that, according to the volatility-adjusted valuation model, the current price of Bitcoin is underestimated by about $16,000 compared to gold.

Current price: 111,580 USD (as of August 29)

Reasonable valuation: approximately 126,000 USD

Gap: $16,000 (approximately 13% pump space)

JPMorgan believes that if the market capitalization of BTC reaches the scale of private investment in gold (approximately $5 trillion), it will require further pump and may attract institutional funds comparable to gold.

Institutional adoption increases, volatility naturally decreases

Analysts point out that the decline in Bitcoin’s Fluctuation is related to the sharp increase in corporate finance departments’ adoption of BTC over the past year. More and more companies are incorporating Bitcoin into their asset reserves as a passive holding asset, which has reduced market sell-offs and excessive trading behavior, thereby decreasing the price volatility.

This phenomenon is similar to the market structure of gold, providing a foundation for Bitcoin’s positioning as “digital gold.”

Comparison with Gold: The Rise of Competing Asset Classes

Gold has long been regarded as a safe-haven asset, and the narrative of Bitcoin as “digital gold” is gaining more recognition.

JPMorgan pointed out that if the fluctuation gap narrows, institutional investors may regard Bitcoin as an asset allocation option equivalent to gold, especially against the backdrop of ongoing global inflationary pressures and monetary policy uncertainty.

Conclusion

JPMorgan’s analysis shows that Bitcoin is at a critical turning point: volatility has hit a new low, its valuation is undervalued, and institutional adoption is on the rise. These factors together constitute a potential bullish catalyst. If the price breaks through $126,000, BTC may enter an era of capital allocation on par with gold. For more real-time market data and in-depth analysis, please follow the official Gate platform.