Bitcoin Trading at Historic Low Volatility, JPMorgan Reports
JPMorgan's research indicates that Bitcoin (BTC) is undervalued relative to gold as its volatility decreases. Key points include:
- Bitcoin's six-month rolling volatility has dropped from 60% at the start of the year to 30%, the lowest on record.
- The ratio of Bitcoin's volatility to gold is now only twice as high, also a record low.
- On a volatility-adjusted basis, Bitcoin's market cap would need to increase by 13%, equating to a price of approximately $126,000, to match gold's $5 trillion investment.
- Bitcoin is currently viewed as undervalued by about $16,000 compared to gold, indicating potential for growth.
- Corporate treasuries now hold over 6% of Bitcoin's total supply, contributing to increased institutional interest.
- Recent corporate actions include FTSE Russell upgrades and significant equity raises aimed at Bitcoin treasury positions.
These trends highlight growing corporate adoption and passive capital inflows into Bitcoin.