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JPMorgan: Bitcoin Volatility Hits Historic Low, Price Undervalued Compared to Gold
Summary: According to Coindesk, JPMorgan stated in a research report that Bitcoin is currently undervalued compared to gold due to its historically low volatility. The report notes that Bitcoin's six-month rolling volatility has dropped from nearly 60% at the beginning of the year to around 30% currently, reaching a historic low. With volatility approaching that of ...
According to Coindesk, JPMorgan stated in a research report that Bitcoin is currently undervalued compared to gold due to its historically low volatility. The report notes that Bitcoin's six-month rolling volatility has dropped from nearly 60% at the beginning of the year to around 30% currently, reaching a historic low. With volatility approaching that of gold, Bitcoin's current volatility is only twice that of gold, the lowest ratio in history. JPMorgan believes this makes Bitcoin increasingly attractive to institutional portfolios.
Adjusted for volatility, Bitcoin's market value would need to grow by 13%, reaching around $126,000, to match the $5 trillion private investment scale of gold. According to the bank's model, Bitcoin is currently undervalued by about $16,000 compared to gold, indicating potential upside.
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Link: JPMorgan: Bitcoin Volatility Hits Historic Low, Price Undervalued Compared to Gold [Copy]
