- JP Morgan describes Bitcoin’s price as undervalued with record low volatility.
- Institutional inflows reinforce Bitcoin’s bullish environment.
- Treasury and corporate accumulation increases Bitcoin’s market potential.
JP Morgan analysts, led by Nikolaos Panigirtzoglou, reported on August 28, 2025, that Bitcoin’s price is considered undervalued amid record-low volatility and increased institutional interest.
This analysis highlights a bullish outlook due to significant institutional inflows, ETF activity, and reduced volatility, potentially impacting Bitcoin’s valuation trajectory and market dynamics.
JP Morgan analysts identify Bitcoin’s current market price as undervalued, citing record low volatility levels. Their analysis highlights a bullish structural environment reinforced by increased institutional inflows and renewed interest in exchange-traded funds and corporate accumulation.
JP Morgan reported, “Expect that the allocations to Bitcoin by institutional investors could match those of competing asset classes such as gold if there is convergence in volatilities.” Institutional analysis, led by Nikolaos Panigirtzoglou, suggests Bitcoin’s allocations by institutional investors could match those of asset classes like gold if volatility converges. Firms like Metaplanet and Kindly MD are increasing their Bitcoin holdings significantly.
Bitcoin’s muted volatility and increased corporate treasury holdings are influential. The rise in corporate treasuries now represents more than 6% of Bitcoin’s total supply. Analysts expect increased ETF inflows to further boost this trend. The impact extends to market price estimates, with Bitcoin priced around $113,000—below its volatility-adjusted fair value, which targets $126,000. JP Morgan’s report indicates Bitcoin’s six-month rolling volatility is now half its previous average.
Historical trends, like the volatility collapse in late 2020, often precede market gains. JP Morgan projects that similar institutional flows could impact prices positively this time. The institutional supply absorption vastly exceeds new miner output. The Financial and technological outcomes of these shifts could be substantial as institutional interest grows. This trend could alter crypto-asset allocations and lead to technological advances that support increased volatility management.
