What happened?
JPMorgan released a report suggesting that Bitcoin is currently undervalued compared to gold, highlighting its decreased volatility and potential for more upside, especially as institutional interest in the cryptocurrency grows. The report notes that Bitcoin’s six-month rolling volatility has dropped significantly from nearly 60% at the beginning of 2025 to about 30%, marking its lowest level on record. This decrease in volatility has narrowed the gap with gold, historically known for its stability.
Who does this affect?
This development primarily affects investors, both retail and institutional, interested in Bitcoin and other cryptocurrencies. Institutional investors, corporate treasuries, and Wall Street firms are particularly impacted, as they are increasingly recognizing Bitcoin as a digital reserve asset comparable to gold. Companies like Metaplanet and Kindly MD have expanded their Bitcoin holdings amid this shifting perception, potentially influencing how other firms approach cryptocurrency investments.
Why does this matter?
With Bitcoin being identified as undervalued relative to gold, there could be a significant impact on the market as more investors may consider increasing their exposure to Bitcoin. This perception of undervaluation suggests potential price increases in the cryptocurrency market, which can lead to heightened activity and investment. The report indicates that if Bitcoin’s market cap adjusted for volatility matches gold’s, its price could increase to around $126,000, driving both confidence and caution among market participants speculating on future cryptocurrency trends.