Bitcoin is experiencing the lowest volatility in its history, at just 30%, down from nearly 60% at the beginning of the year. JPMorgan analysts say the cryptocurrency has come closest to gold in terms of stability for the first time, opening up prospects for it to rise to $126,000.
Bitcoin is experiencing the lowest volatility in its history, at just 30%, down from nearly 60% at the beginning of the year. JPMorgan analysts say the cryptocurrency has come closest to gold in terms of stability for the first time, opening up prospects for it to rise to $126,000.
This is reported by CoinDesk, citing research by JPMorgan. The report states that Bitcoin is now only twice as volatile as gold, which is the lowest figure on record. For institutional investors, this is a signal that the digital asset is gradually moving into the category of «stable» instruments.
JPMorgan estimates that Bitcoin’s volatility-adjusted market cap would need to rise by about 13% to match gold’s. That would give it the potential to rise to $126,000 per coin. The bank currently estimates that Bitcoin is undervalued by about $16,000.
Analysts attribute the trend to active purchases by corporate treasuries: companies have already accumulated more than 6% of the total volume of coins. This dynamics is reminiscent of the impact of quantitative easing by central banks on the bond market, which at one time significantly reduced their volatility.
Among examples of corporate integration, JPMorgan cites Metaplanet, which entered the FTSE Russell mid-cap index after a Bitcoin investment, and Kindly MD, which plans to raise up to $5 billion after buying $679 million in cryptocurrency. Other players are joining the race, seeking to repeat the success of companies like MicroStrategy.
Despite the positive outlook, challenges remain. The market does not yet have the technology to amplify quantum signals on a large scale without losing entanglement, and there are risks associated with international agreements and the regulatory environment. At the same time, Bitcoin’s volatility is currently at its lowest level in history, which could be a decisive argument for large investors.
Previously, dev.ua wrote about how the world’s largest cryptocurrency, Bitcoin, grew by 2% in July and set a new record, rising to $111,999 at the time. Within a day, Bitcoin had broken the record and had already jumped over $118,000.
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