According to analysts at JPMorgan Bank, Bitcoin significantly undervalued compared to gold on a volatility-adjusted basis.
The Bitcoin to Gold volatility ratio has fallen below 2,0, meaning Bitcoin now requires approximately 1,85 times more risk capital than gold, according to a report from JPMorgan analysts. Based on this ratio, the flagship crypto asset’s current market capitalization of $2,3 trillion would need to grow by approximately 42%. This implies a theoretical Bitcoin price of $165,000 to equal the $6 trillion in private gold investment through ETF, bars and coins.
The bank’s analysts noted that the gap in Bitcoin’s valuation has narrowed from $36,000 at the end of 2024 to around $46,000 today compared to gold’s volatility-adjusted level.
Thus, this mechanical exercise could lead to a significant increase in the Bitcoin price, they said.
The projected rise comes amid what JPMorgan analysts call growing interest in «depreciation trading» and rising investor demand for alternative stores of value.
Total inflow of funds into spot Bitcoin- and gold-ETF has risen sharply over the past year. Inflows into BTC funds increased in early 2025 but declined in August, while inflows into goldETF has increased recently, narrowing the gap between them.