JPMorgan: Bitcoin Volatility Hits Historic Low, Price Undervalued Compared to Gold
BlockBeats News, August 28th - According to Coindesk, JPMorgan Chase stated in a research report that Bitcoin is deemed too cheap compared to gold, as its volatility has reached a historical low. The report noted that Bitcoin's six-month rolling volatility has decreased from nearly 60% at the beginning of the year to around 30% currently, marking a new low. With volatility approaching that of gold, Bitcoin's current volatility is only twice that of gold, also representing the lowest ratio in history. JPMorgan Chase believes this makes Bitcoin increasingly attractive to institutional portfolios.
Based on volatility-adjusted calculations, Bitcoin's market cap would need to grow by 13%, with a price of around $126,000, to align with gold's $5 trillion private investment scale. According to the bank's model, Bitcoin is currently undervalued by around $16,000 relative to gold, indicating potential upside.
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