Bitcoin Volatility Reaches Historic Low: JPMorgan Analyst Report
- Bitcoin volatility hits historical low, suggesting undervaluation compared to gold.
- JPMorgan report suggests Bitcoin is valued $16,000 below gold.
- Corporate treasuries hold over 6% of Bitcoin’s supply.
JPMorgan analysts report Bitcoin’s volatility has reached a historic low of 30%, indicating it is undervalued compared to gold, with corporate treasury holdings influencing this trend.
Institutional adoption and evolving market dynamics drive BTC’s valuation gap with gold, signaling potential investment opportunities amid increased corporate and passive index flows.
In a recent report by JPMorgan, analysts highlight that Bitcoin’s volatility has decreased to a historic low of 30%, indicating it may be undervalued compared to gold. Corporate treasuries and institutional inflows have largely contributed to this trend.
The report, led by Nikolaos Panigirtzoglou, reveals that corporate treasuries now hold over 6% of Bitcoin’s supply. Analysts argue that Bitcoin’s valuation suggests it should be priced at $126K to align with its volatility compared to gold.
As institutional adoption increases, Bitcoin’s perceived value appears to be on the rise despite current pricing. The growing influence of institutional flows has led to a notable shift in the market dynamics of cryptocurrency assets.
Financial impact is seen as passive inflows mirror adoption trends driven by equity indices. Additionally, the recent volatility drop positions Bitcoin to potentially align with gold’s $5T private investment allocation in the near future.
According to on-chain data, significant sell pressure remains, with Bitcoin trading below certain cost bases, posing challenges to market recovery. Recovery amidst sell pressure signifies Bitcoin’s complex market dynamics.
Glassnode Analytics notes that Bitcoin trades below the cost basis of recent cohorts, leading to potential resistance. If historical trends and institutional patterns remain constant, Bitcoin’s market may witness shifts towards broader DeFi protocols in response to volatility trends. “Bitcoin’s volatility has dropped to a historic low of 30%, making it undervalued compared to gold according to our models.” – Nikolaos Panigirtzoglou, Managing Director at JPMorgan.
