JPMorgan: The current bitcoin price is too low

According to JPMorgan analysts, the current Bitcoin price is too low compared to gold, since BTC volatility has fallen to a record low values.

The volatility of bitcoin decreased from almost 60% at the beginning of the year to the current 30%, this is a historical minimum. Given this, analysts, led by managing director Nikolaios Panigirtzoglu, believe that the fair value of bitcoin is approximately $ 126,000.

A sharp increase in purchases of corporate treasury bonds, which currently accounts for more than 6% of the total supply of bitcoin, played an important role in suppressing volatility. JPMorgan compared this dynamics with the quantitative liberalization of central banks after 2008, which softened the fluctuations in the bond market due to fixing assets in passive assets.

A passive influx of funds in bitcoin is also due to global inclusion of stock indices. Analysts noted that the addition of Strategy (earlier Microstrategy) has already attracted new investments to the main benchmarks, and the increase in Metaplanet status to average capitalization in FTSE RUSSELL indexes has led to the company in the FTSE All-depend index.

Analysts believe that a combination of the accumulation of corporate treasury bonds, an influx of funds due to indexes, and reducing volatility increases the investment attractiveness of bitcoin. Reduced volatility simplifies the distribution of capital to institutional investors, since bitcoin and gold are now closely closer in terms of risk.

According to JPMorgan analysts, the bitcoin volatility coefficient to gold fell to 2.0, the lowest value in the history of observations. This means that at present, bitcoin absorbs twice as much risky capital than gold in portfolio distributions.

Based on this, the market capitalization of bitcoin in the amount of $ 2.2 trillion should grow by about 13%, which involves the theoretical price of $ 126,000.

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