Bitcoin volatility dropped sharply in 2025, now at 30%.
JPMorgan views Bitcoin as undervalued compared to gold.
Lower risk profile may attract institutional investors.
Global banking giant JPMorgan has released a new assessment claiming that Bitcoin is currently undervalued compared to gold. This view comes as Bitcoin’s volatility has reached historic lows, falling from 60% to just 30% in 2025.
This dramatic reduction in volatility suggests a more mature and stable market, with fewer drastic price swings and increased investor confidence. JPMorgan analysts highlight that, based on its risk-adjusted metrics, Bitcoin should be trading higher if compared fairly with traditional safe-haven assets like gold.
This isn’t the first time Bitcoin has been dubbed “digital gold,” but the reduced volatility makes the comparison more meaningful now than ever before.
Lower Volatility Could Spark Institutional Demand
JPMorgan’s insights are likely to attract attention from institutional investors. The bank notes that the current pricing of Bitcoin does not reflect its improved risk profile. In other words, Bitcoin is offering lower risk than before but hasn’t yet been rewarded with higher valuations.
With volatility at just 30%, Bitcoin becomes more compatible with institutional investment mandates. Many asset managers have previously shied away from Bitcoin due to its unpredictable nature. But in this new environment, Bitcoin’s appeal as a stable long-term investment is growing.
Add to that the broader concerns around inflation and uncertain central bank policies, and Bitcoin might be emerging as a preferred alternative to gold.
JUST IN: JPMorgan says Bitcoin is undervalued compared to gold as volatility hits record lows.
Bitcoin volatility collapsed from 60% → 30% in 2025. pic.twitter.com/VFr1s4euKW
— Bitcoin Archive (@BTC_Archive) August 28, 2025
Market Maturity Signals Long-Term Growth
Bitcoin’s calmer market behavior could signal the beginning of a new phase—less driven by hype and more by fundamental valuation. As traditional institutions pay closer attention, the adoption rate could rise.
JPMorgan’s message is clear: Bitcoin’s risk is lower than before, but its price doesn’t yet reflect that. If this view gains traction, Bitcoin may be set for significant upward movement in the months ahead.
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