Bitcoin's volatility is declining to historic lows, creating new investment opportunities and highlighting its undervaluation compared to gold.
Historic Low of Bitcoin Volatility
JPMorgan analysts report that Bitcoin's volatility has decreased to a historic low of 30%, indicating it may be undervalued compared to gold. This trend is attributed to the growing influence of corporate treasuries and institutional inflows.
Impact of Corporate Treasuries
According to the report led by Nikolaos Panigirtzoglou, corporate treasuries now hold over 6% of Bitcoin's supply. This confirms the increasing impact of institutional investments on the valuation of the cryptocurrency.
Future Prospects
Despite current pricing, there is a rising perception of Bitcoin's value with increased institutional flows. Data also show that Bitcoin is trading below recent investment levels, posing certain challenges to market recovery.
The reduction in Bitcoin's volatility and increasing corporate investments may signal its undervaluation against the backdrop of shifting market dynamics.
