Analysts at JP Morgan believe that Bitcoin's price is currently undervalued amid record low volatility and increased institutional interest.
JP Morgan Analysis
The analysis conducted by JP Morgan analysts, led by Nikolaos Panigirtzoglou, reports that Bitcoin's current market price is considered undervalued amid record low volatility. The report highlights a bullish outlook due to significant institutional inflows, ETF activity, and reduced volatility, which could impact price projections and market dynamics.
Institutional Investments
JP Morgan notes that allocations to Bitcoin by institutional investors could match those of competing asset classes such as gold if there is convergence in volatilities. Analysis led by Nikolaos Panigirtzoglou suggests substantial increases in the share of Bitcoin in corporate treasuries, now representing more than 6% of Bitcoin's total supply.
Market Outlook
Based on historical trends, such as the volatility collapse in late 2020, JP Morgan projects that similar institutional flows could positively impact Bitcoin prices in the upcoming months. Increased ETF inflows are expected to support this trend further, potentially leading to significant implications for both financial and technological outcomes.
Overall, JP Morgan emphasizes the favorable conditions for Bitcoin driven by increased institutional investments and record low volatility, which may contribute to a rise in its market value.
