JPMorgan Says Bitcoin Is Underpriced Compared to Gold

Bitcoin is trading around 110,000 dollars and according to JPMorgan, this cryptocurrency may be undervalued compared to gold. In a recent report, the bank noted that the volatility of Bitcoin has decreased significantly, narrowing the gap with this precious metal. Continuous fluctuations over six months have fallen from nearly 60% at the beginning of 2025 to around 30%, the lowest level recorded. With the volatility gradually leaning towards gold, Bitcoin is currently only fluctuating at twice - a ratio never seen before. JPMorgan estimates that, on a volatility-adjusted basis, the market capitalization of Bitcoin would need to increase by about 13%, pushing the price up to 126,000 dollars, to match the 5 trillion dollars in private investment of gold. According to this model, BTC appears to be undervalued by about 16,000 dollars, creating an opportunity for a price increase if institutions continue to raise their level of investment. The Acceleration of Business Adoption Institutional capital is shaping the current trajectory of Bitcoin. Corporate treasuries now hold more than 6% of the total supply, a driver that JPMorgan likens to central bank quantitative easing, which reduces bond volatility. The inclusion in indices and passive capital flows further strengthen this trend. Recent examples include Metaplanet (3350), upgraded to the mid-cap category of FTSE Russell, and Kindly MD (NAKA) listed on Nasdaq, announcing plans to raise $5 billion after purchasing bitcoin at a price of $679 million. At the same time, companies led by veterans in the industry such as Adam Back are competing to achieve the fund management position of MARA Holdings and MicroStrategy (MSTR) of Michael Saylor. These moves show that Wall Street is increasingly viewing Bitcoin not just as a speculative asset. Instead, it is being positioned as a long-term digital reserve - complementing, and in some cases, competing with gold. Main institutional trends: More than 6% of the Bitcoin supply is currently held in the treasuries of companies. The introduction of the index is driving passive capital flows into BTC. Large companies like Metaplanet and Kindly MD are expanding their investment portfolios. Technical Outlook of Bitcoin: Upcoming Key Levels Technically, Bitcoin continues to consolidate within a descending channel that has formed since mid-August. The price is currently testing the 50-period SMA at $111,332, with resistance at $113,427 acting as a ceiling. A long candle above this level indicates ongoing selling pressure. Momentum indicators indicate caution. The RSI indicator at 35 is fluctuating near the oversold level, while the MACD chart remains negative, maintaining a short-term downtrend. A confirmed price breakout above the $113,427 level could trigger a rally to $116,850 and $120,900. On the contrary, if the level of 108.695 dollars cannot be maintained, the risk of opening the door to the level of 105.150 dollars becomes imminent, with deeper support at the level of 101.550 dollars.

For traders, this setup is quite simple: a buy position will become attractive when it surpasses the level of $113,427, targeting $116,850 - $120,900 with a stop loss below $108,500. On the other hand, short sell orders below 108,500 dollars may target 105,150 dollars. Looking further ahead, the capital flow from institutions and the continued decrease in volatility still reinforce the possibility that BTC will retest the 130,000 dollar level, supporting JPMorgan's view that Bitcoin is still undervalued compared to gold.