JPMorgan: Bitcoin is "too cheap" and its fair price should be $126,000 due to its low volatility
According to analysts from #JPMorgan , the current price of #bitcoin is significantly below its fair value. In a recent note, the investment firm argues that the volatility of Bitcoin has fallen to a historic low, making it more attractive to institutional investors.
Historic low volatility: The volatility of #BTC has dropped from 60% earlier this year to approximately 30%, bringing it closer to gold in terms of risk. The volatility ratio between both assets has reached its lowest recorded level, suggesting that Bitcoin is in a position to capture a larger allocation of capital.
Fair value of $126,000: Based on this lower volatility and the comparison with the market capitalization of gold, JPMorgan analysts estimate that the "fair value" of Bitcoin is around $126,000. This price represents a 13% increase over its current value.
Forces behind stability: The firm attributes this decline in volatility to an increase in corporate treasury bond purchases, which now represent more than 6% of the total Bitcoin supply. Companies like KindlyMD and the newly renamed Strategy (formerly MicroStrategy) are at the forefront of this trend, further anchoring Bitcoin's liquidity.
Passive capital inflows: The inclusion of companies with large Bitcoin reserves in market indices, such as Metaplanet's upgrade to the FTSE All-World index, has also driven passive investment flows, further stabilizing the market.
