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A recent study by JPMorgan says that Bitcoin (BTC), the most popular cryptocurrency in the world, is now undervalued. According to a research that Decrypt published on August 29, 2025, analysts led by Nikolaos Panigirtzoglou said that Bitcoin’s fair value should be approximately $126,000 per coin, which they think might happen by the end of the year.
The fact that Bitcoin’s volatility is going down quickly, that more institutions are using it, and that it is becoming more like gold as a store of value are all reasons for this positive outlook. Even if its price has dropped recently, Bitcoin’s fundamentals imply that it has a lot of room to grow, which makes it a good investment for institutions and businesses.
Bitcoin’s Current Market Status
CoinMarketCap says that as of September 2, 2025, Bitcoin is trading at about $111,031, which is almost 2% less than it was 24 hours ago. This price is more than 10% lower than the all-time high of $124,457, which was set on August 14, 2025. Short-term price changes are common in the unpredictable crypto market, but JPMorgan’s research shows that Bitcoin’s current price is much lower than its true value, making it a great investment opportunity.
The paper talks about a few important reasons why this is the case, such as Bitcoin’s historically low volatility, the fact that more companies are buying it, and the fact that it is less risky than gold. These changes are changing how Bitcoin fits into institutional portfolios and making it more likely to grow in value over time.
Decreasing Volatility: A Big Deal for Bitcoin
The analysis from JPMorgan’s shows that Bitcoin’s volatility has dropped a lot, which is one of the most important things it found. Bitcoin’s yearly volatility was about 60% at the beginning of 2025. By August, this number had dropped to barely 30%, the lowest level it had ever been at. This improved stability is very important for making Bitcoin more attractive to institutional investors, who usually look for assets with risk profiles that are easy to understand.
“The most surprising thing to happen this year is that Bitcoin’s volatility has dropped to an all-time low of 30%. Panigirtzoglou wrote, “One of the main reasons for this is that businesses are buying Bitcoin more quickly.”
The rising participation of businesses in the Bitcoin market is mostly to blame for this drop in volatility. More than 6% of all Bitcoin is now held on the balance sheets of publicly traded corporations, which helps keep the price stable. Like the quantitative easing tactics that central banks used after 2008, companies who buy Bitcoin and retain it for a long time help keep prices stable.
Corporate Use Drives Stability
A big trend in 2025 is that more and more businesses are buying Bitcoin. MicroStrategy, which is now on major global indices, and Metaplanet, which is now in the FTSE Russell mid-cap category and the FTSE All-World Index, are two companies that are leading the way. These additions have caused passive capital to flow into Bitcoin, as institutional investors who follow these indices put more money into the cryptocurrency.
Companies are fighting harder to get more Bitcoin. For example, KindlyMD, a firm listed on the Nasdaq, recently said it would raise up to $5 billion, utilizing Bitcoin as its main reserve asset. BSTR, a company linked to Bitcoin pioneer Adam Back, is also said to want to become the second-largest corporate holder of Bitcoin, behind only MicroStrategy.
This buying binge by businesses is not only keeping the price of Bitcoin stable, but it also shows that more and more people see it as a real asset class. More and more businesses are adding Bitcoin to their balance sheets. This makes the cryptocurrency more liquid and gives it more market depth, which makes it less volatile.
Bitcoin vs. Gold: The Risk Gap Is Getting Smaller
JPMorgan’s study also compares Bitcoin to gold, saying that the risk profile of the cryptocurrency is becoming more like that of the precious metal.
The ratio of Bitcoin to gold’s volatility has plummeted to 2.0, which is the lowest level ever. This indicates that Bitcoin only needs twice as much risk capital as gold in investment portfolios, which is a big improvement over the last several years.
Gold’s private investment value is thought to be $5 trillion, while Bitcoin’s market capitalization is $2.2 trillion. This means that Bitcoin might rise by about 13% to reach parity. This math backs up JPMorgan’s fair value estimate of $126,000, which is in line with Bitcoin’s ability to bridge the gap in value with gold.
Valuation Dynamics: There is room for growth.
The paper also talks about a big change in how Bitcoin’s value changes. Bitcoin was worth about $36,000 more than it should have been by the end of 2024. Today, it is worth around $13,000 less than the $126,000 it is thought to be worth. This low price means that Bitcoin has a lot of space to go up in value, especially as demand from businesses and institutions is still growing.
Analysts say that Bitcoin is in a good cycle because its volatility is going down and more businesses are using it. As the cryptocurrency gets less hazardous, more institutional money flows into it. This makes its price more stable and makes it more appealing.
JPMorgan’s $126,000 goal is high, but other analysts think it will be considerably higher. Bitwise, a well-known crypto asset manager, recently said that Bitcoin might be worth $1.3 million by 2035. This is because more businesses are using it and the economy is changing around the world. Even if these long-term predictions are just guesses, they show that more and more people believe that Bitcoin might be a game-changing asset.
Conclusion
JPMorgan’s most recent report makes a strong case for Bitcoin’s low price and the fact that more and more institutional investors are interested in it. Bitcoin is ready for big growth because volatility is at an all-time low, businesses are starting to use it more, and the risk gap with gold is getting less. The bank thinks that Bitcoin may close the gap in value between itself and traditional safe-haven investments, which is why it set a price target of $126,000 for the end of 2025. As businesses keep buying Bitcoin and institutional money comes into the market, the cryptocurrency’s role as a store of value is becoming more and more solid. This is a rare chance for investors to take advantage of Bitcoin’s potential to go up while its price is still below what it should be.
