According to a recent report from JPMorgan, Bitcoin may be undervalued by $16,000 compared to gold due to a drop in volatility to a record low level.
Bitcoin’s Volatility Hits Record Low
The report states that Bitcoin’s six-month rolling volatility has decreased from nearly 60% to about 30%, marking the lowest figure ever recorded. Bitcoin is now only twice as volatile as gold, the smallest gap ever witnessed between the two.
Corporate Treasuries are Fueling Demand
JPMorgan links the volatility drop to a significant increase in purchases by corporate treasuries, now holding over 6% of Bitcoin’s total supply. This pattern resembles actions by central banks post-2008 crisis.
Competition Among Firms is Rising
Competition among companies to accumulate Bitcoin is also increasing. Nasdaq-listed KindlyMD recently filed to raise up to $5 billion after purchasing $679 million worth of Bitcoin. Meanwhile, Twenty One Capital aims to challenge Marathon Digital's position as the second-largest corporate holder of Bitcoin.
According to JPMorgan analysts, current demand trends could result in increased Bitcoin prices, making it a more attractive investment relative to gold.
