{"id":383168,"date":"2025-08-29T18:59:12","date_gmt":"2025-08-29T18:59:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/383168\/"},"modified":"2025-08-29T18:59:12","modified_gmt":"2025-08-29T18:59:12","slug":"bitcoin-undervalued-could-hit-126k-by-year-end-jp-morgan","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/383168\/","title":{"rendered":"Bitcoin undervalued, could hit $126K by year-end: JP Morgan"},"content":{"rendered":"

\t\t\t\t\t\t\t\tKey Takeaways<\/p>\n

The volatility of the BTC\/Gold ratio has dropped to a record low of 2, an \u2018undervalued\u2019 level that could push BTC to $126K, per JP Morgan analysts.<\/p>\n

Bitcoin\u2019s [BTC]<\/a> price swings or volatility have cooled off significantly, from over 60% to record lows of 30% in 2025.<\/p>\n

In August, Bitcoin\u2019s price dropped by 11%, falling from above $124,000. Despite this decline, it has yet to show strong support or a decisive rebound at the $110,000 level.<\/p>\n

According to JP Morgan analysts, led by the Managing Director Nikolaos Panigirtzoglou, this was \u2018too low\u2019 and deemed the current BTC price as \u2018undervalued\u2019 against gold.\u00a0<\/p>\n

\"JP<\/a><\/p>\n

Source: Deribit<\/p>\n

Bitcoin to swing back to $126K?<\/strong><\/p>\n

According to the analysts, a strong accumulation of over 6% by corporate treasuries played a huge role in suppressing volatility.\u00a0<\/p>\n

Compared to gold, the volatility of the Bitcoin\/Gold ratio has also dropped to a record low of 2. This meant that BTC consumed twice as much risk capital as gold in client portfolios, the analysts added.\u00a0<\/p>\n

\"JP<\/a><\/p>\n

Source: JP Morgan<\/p>\n

Analysts noted that Bitcoin\u2019s lower volatility presented a strong buying opportunity.<\/p>\n

This was further supported by high inflows from exchange-traded funds (ETFs) and crypto treasuries. Together, these factors signaled favorable market conditions for accumulating BTC.<\/p>\n

\n

\u201cLower volatility makes it easier for institutions to allocate capital, with bitcoin and gold now closer than ever in risk-adjusted terms.\u201d<\/p>\n<\/blockquote>\n

JP Morgan estimates that Bitcoin needs to rise by 13% to match gold\u2019s $5 trillion private allocation.<\/p>\n

At press time, Bitcoin\u2019s market cap stood at $2.2 trillion, a 13% increase would push BTC\u2019s fair value to around $126,000.<\/p>\n

Analyst Nikolaos Panigirtzoglou suggests this target could be reached by the end of the year.<\/p>\n

On-chain data shows that Bitcoin remains undervalued and is approaching a local bottom, provided current 2025 trends continue.<\/p>\n

The True MVRV valuation metric supports this view, showing that previous local bottoms in May and June occurred when the indicator hit 1.6.<\/p>\n

The indicator dropped<\/a> to the same level at the time of writing, suggesting a bottom could be reached if upcoming inflation data favors risk assets.\u00a0\u00a0<\/p>\n

\"JP<\/a><\/p>\n

Source: CryptoQuant<\/p>\n

Hence, if July inflation (PCE) data<\/a> comes in cooler than expected, it could boost September rate cut expectations and BTC price recovery.\u00a0<\/p>\n

On the contrary, a hotter or higher inflation print could trigger a bearish sentiment in the short term.\u00a0<\/p>\n

\t\t\t\t\t\t\t\t\t\t\tNext: CFTC set to open offshore crypto exchanges to U.S. citizens \u2013 Details<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Key Takeaways The volatility of the BTC\/Gold ratio has dropped to a record low of 2, an \u2018undervalued\u2019…\n","protected":false},"author":2,"featured_media":383169,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[52,51,16,15],"class_list":{"0":"post-383168","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-business","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115113594953932470","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/383168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=383168"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/383168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/383169"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=383168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=383168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=383168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}