JPMorgan's Global Market Strategy team, led by Nikolaos Panigirtzoglou, has released a report asserting that Bitcoin is significantly undervalued compared to gold. The analysis highlights Bitcoin's rolling volatility hitting historic lows in 2025, now only twice that of gold—the lowest ratio ever recorded. This reduced volatility enhances Bitcoin's appeal as an institutional investment, with corporate treasuries already holding over 6% of Bitcoin's supply.
The report indicates a fair value target of approximately $126,000 for Bitcoin, suggesting a current undervaluation of around $16,000. This assessment is driven by Bitcoin's inclusion in major indices like FTSE Russell and its evolving role as a portfolio diversifier. Institutional interest is peaking, with JPMorgan noting that Bitcoin's behavior increasingly resembles traditional assets, potentially leading to increased allocations from large investors.
Historically, similar undervaluation calls have triggered short-term rallies and long-term repricing. While immediate market reactions were muted, the broader sentiment is bullish, with technical models indicating sustained momentum if Bitcoin maintains weekly closes above $119,000.