Bitcoin Undervalued Versus Gold, Says JPMorgan

JPMorgan says bitcoin is undervalued compared to gold as volatility hits record lows. Analysts highlight institutional adoption and forecast BTC could rise toward $126,000.

Bitcoin volatility drops to record lows

According to JPMorgan, bitcoin’s volatility has fallen from 60% at the start of the year to 30% now. This is the lowest level on record, bringing bitcoin closer to gold in terms of stability. Today, BTC is only twice as volatile as gold — the lowest ratio ever.

Analysts argue that this makes bitcoin increasingly attractive for institutional portfolios. On a volatility-adjusted basis, its market cap should rise 13%, which implies a price of about $126,000. By JPMorgan’s models, BTC is undervalued by nearly $16,000 compared to gold, leaving room for upside.

Institutional adoption strengthens

The report also linked this shift to accelerating corporate treasury purchases, which now account for more than 6% of the total BTC supply. Analysts compared the trend to central bank quantitative easing, which once reduced bond volatility.

Corporate adoption is growing through equity index inclusion, drawing passive capital inflows. For instance, Japan’s Metaplanet was upgraded to FTSE Russell’s mid-cap category, while Nasdaq-listed KindlyMD (NAKA) is raising up to $5 billion after buying $679 million worth of BTC.

New players, such as Adam Back’s firm, also aim to challenge MARA Holdings’ treasury position, standing alongside Michael Saylor’s Strategy (MSTR). This reflects a new wave of institutional demand in the crypto market.