Key Takeaways
The volatility of the BTC/Gold ratio has dropped to a file low of two, an ‘undervalued’ degree that might push BTC to $126K, per JP Morgan analysts.
Bitcoin’s [BTC] worth swings or volatility have cooled off considerably, from over 60% to file lows of 30% in 2025.
In August, Bitcoin’s worth dropped by 11%, falling from above $124,000. Regardless of this decline, it has but to point out robust assist or a decisive rebound on the $110,000 degree.
In accordance with JP Morgan analysts, led by the Managing Director Nikolaos Panigirtzoglou, this was ‘too low’ and deemed the present BTC worth as ‘undervalued’ in opposition to gold.
Supply: Deribit
Bitcoin to swing again to $126K?
In accordance 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 consumer 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 elements 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 personal allocation.
At press time, Bitcoin’s market cap stood at $2.2 trillion, a 13% improve would push BTC’s truthful worth to round $126,000.
Analyst Nikolaos Panigirtzoglou suggests this goal might be reached by the top of the yr.
On-chain information reveals that Bitcoin stays undervalued and is approaching a neighborhood backside, supplied present 2025 developments proceed.
The True MVRV valuation metric helps this view, displaying that earlier native bottoms in Could and June occurred when the indicator hit 1.6.
The indicator dropped to the identical degree on the time of writing, suggesting a backside might be reached if upcoming inflation information favors threat belongings.
Supply: CryptoQuant
Therefore, if July inflation (PCE) data is available in cooler than anticipated, it might enhance September price minimize expectations and BTC worth restoration.
Quite the opposite, a warmer or increased inflation print might set off a bearish sentiment within the brief time period.
