Bitcoin undervalued, could hit $126K by year-end: JP Morgan
Key Takeaways
The volatility of the BTC/Gold ratio has dropped to a file low of two, an ‘undervalued’ stage that might push BTC to $126K, per JP Morgan analysts.
Bitcoin’s [BTC] value swings or volatility have cooled off considerably, from over 60% to file lows of 30% in 2025.
In August, Bitcoin’s value dropped by 11%, falling from above $124,000. Regardless of this decline, it has but to point out robust help or a decisive rebound on the $110,000 stage.
In line with JP Morgan analysts, led by the Managing Director Nikolaos Panigirtzoglou, this was ‘too low’ and deemed the present BTC value as ‘undervalued’ in opposition to gold.
Supply: Deribit
Bitcoin to swing again to $126K?
In line with the analysts, a robust accumulation of over 6% by company treasuries performed an enormous function in suppressing volatility.
In comparison with gold, the volatility of the Bitcoin/Gold ratio has additionally dropped to a file low of two. This meant that BTC consumed twice as a lot threat capital as gold in shopper portfolios, the analysts added.
Supply: JP Morgan
Analysts famous that Bitcoin’s decrease volatility offered a robust shopping for alternative.
This was additional supported by excessive inflows from exchange-traded funds (ETFs) and crypto treasuries. Collectively, these components signaled favorable market situations for accumulating BTC.
“Decrease volatility makes it simpler for establishments to allocate capital, with bitcoin and gold now nearer than ever in risk-adjusted phrases.”
JP Morgan estimates that Bitcoin must rise by 13% to match gold’s $5 trillion non-public allocation.
At press time, Bitcoin’s market cap stood at $2.2 trillion, a 13% enhance would push BTC’s truthful worth to round $126,000.
Analyst Nikolaos Panigirtzoglou suggests this goal could possibly be reached by the tip of the 12 months.
On-chain information exhibits that Bitcoin stays undervalued and is approaching an area backside, supplied present 2025 developments proceed.
The True MVRV valuation metric helps this view, displaying that earlier native bottoms in Might and June occurred when the indicator hit 1.6.
The indicator dropped to the identical stage on the time of writing, suggesting a backside could possibly be reached if upcoming inflation information favors threat property.
Supply: CryptoQuant
Therefore, if July inflation (PCE) data is available in cooler than anticipated, it may enhance September fee minimize expectations and BTC value restoration.
Quite the opposite, a warmer or greater inflation print may set off a bearish sentiment within the brief time period.
