- Bitcoin’s volatility is expected to halve in 2025, drawing cautious institutional investors.
- Corporate treasuries now hold over 6% of Bitcoin’s circulating supply.
- JPMorgan values Bitcoin at $16K below gold parity, implying roughly $126K upside potential.
JPMorgan Chase has stirred the market with its latest Bitcoin report, identifying the cryptocurrency as significantly undervalued relative to gold.
What caught their attention? Bitcoin’s volatility has plunged this year. Volatility has dropped from roughly 60% earlier in 2024 to about 30% now, reaching historic lows.
The bank interprets this decline in volatility as a sign that Bitcoin is maturing—moving away from a highly speculative instrument toward an asset that behaves more like a serious investment.
As an asset becomes less volatile, it increasingly resembles gold in its appeal as a store of value and a place to park capital.
Reduced Bitcoin volatility sparks institutional interest
The report suggests this shift is boosting Bitcoin’s credibility and aligning it more closely with traditional assets. It strengthens Bitcoin’s case as both an investment and a store of value in mainstream markets.
Indeed, corporate treasuries now control more than 6% of total Bitcoin supply.
Publicly listed companies also gain indirect exposure when they are included in equity indices, channeling capital toward Bitcoin holders without firms needing to trade crypto directly.
JPMorgan’s analysis further indicates Bitcoin is undervalued by roughly $16,000 compared with gold when accounting for differences in volatility.
The report implies an implicit Bitcoin valuation of about $126,000.
This suggests substantial upside if the market fully prices in Bitcoin’s improved stability and its growing role among institutional investors.
Although Bitcoin’s price has stayed resilient above $111,000, the valuation gap hints at additional room for growth as adoption expands and volatility remains subdued.
Market dynamics and future outlook
JPMorgan also highlights a change in market dynamics. Passive capital—money from index funds that buy shares of companies with Bitcoin exposure—creates steady, predictable demand.
That steady demand helps shield Bitcoin from being driven solely by speculative trading.
The bank notes that the 200-day moving average has acted as a strong technical support level, reinforcing a longer-term bullish view even amid modest short-term price swings.
However, some indicators show traders maintaining cautious hedges in the options market. These positions reflect a more short-term bearish sentiment, even though the overall trend remains constructive.