- JP Morgan analysts argue that Bitcoin should be valued at $126,000 based on current volatility levels.
- BTC volatility has dropped from 60% to 30% in 2025, making it more attractive for institutional investors.
- Corporate treasuries and major companies continue allocating to Bitcoin, echoing MicroStrategy’s long-term strategy.
- Bitcoin’s correlation with gold and equities continues to spark debate over its role as “digital gold.”
Bitcoin’s Price “Too Low,” According to JP Morgan
JP Morgan analysts suggested that Bitcoin (BTC) is undervalued, raising eyebrows even though it recently traded at around $111,950, according to CoinGecko data.
The analysts claim Bitcoin should be closer to $126,000 per coin, highlighting reduced volatility and rising institutional demand as key drivers.
BTC reached a fresh all-time high of $124,128 earlier this month, but has since consolidated, showing little movement over the past week. According to Nikolaos Panigirtzoglou, lead analyst at JP Morgan, Bitcoin’s muted volatility compared to gold strengthens the case for higher valuations.
Also Read: Bitcoin Price Slumps Below $109K with Liquidations Surpassing $530M
Institutional Demand Driving Stability
Historically, Bitcoin has been known for extreme volatility. However, JP Morgan notes that its volatility has plunged from 60% at the start of 2025 to just 30%, a level not seen in previous cycles. This dramatic drop is attributed to corporate treasuries and institutional allocations to Bitcoin.
The report emphasized:
“It is realistic to expect that allocations to Bitcoin by institutional investors could match those of competing asset classes such as gold if there is convergence in volatilities.”
Notably, publicly-traded companies have increasingly followed MicroStrategy’s lead, allocating part of their reserves to BTC. MicroStrategy, now rebranded as Strategy (NASDAQ: MSTR), has seen its stock price soar since adopting its Bitcoin-first approach in 2020.
Bitcoin vs. Gold: The Ongoing Debate
The Bitcoin vs. gold debate remains a hot topic among investors. Many describe Bitcoin as “digital gold,” but its correlation with U.S. equities—especially tech stocks—challenges this narrative.
JP Morgan analysts highlight that while gold still reigns as the ultimate safe-haven asset, Bitcoin is gaining ground due to its lower volatility and broader institutional adoption. If the convergence trend continues, Bitcoin could eventually rival gold’s market role.
Outlook for Bitcoin in 2025
With institutions steadily increasing exposure and volatility at historic lows, JP Morgan sees room for Bitcoin to climb past $126,000 by year-end. Whether BTC cements itself as a true hedge like gold—or remains more correlated with risk assets—will be a defining factor in its trajectory.
For now, analysts agree: Bitcoin’s current price looks “too low” compared to where it could be heading.
About the Author
