JPMorgan: Bitcoin is undervalued relative to gold, has upside potential

JPMorgan has assessed that Bitcoin is trading at a significant discount to gold, driven by a sharp decline in its volatility, CoinDesk reported. The bank noted that Bitcoin's six-month rolling volatility has fallen from around 60% at the start of the year to a record low of approximately 30%, making the asset more appealing to institutional investors. JPMorgan stated that when adjusting for volatility, Bitcoin's market capitalization should be 13% higher, implying a price of around $126,000. The bank calculates that Bitcoin is currently undervalued by approximately $16,000 relative to gold, indicating potential for appreciation. JPMorgan also explained that passive capital inflows are being generated as publicly traded companies holding Bitcoin are added to stock indices.