Bitcoin Attractively Valued as Volatility Falls: JP Morgan

Core Insights - Bitcoin and ETFs like the Coinshares Valkyrie Bitcoin Fund (BRRR) experienced poor performance in August, which aligns with Bitcoin's historical trend of underperforming in this month [1][2] - Some experts, including analysts from JP Morgan, suggest that the recent decline in Bitcoin's value presents a potential buying opportunity, as it has fallen below its fair value [2][4] - Analyst Nikolaos Panigirtzoglou indicates that Bitcoin's risk-adjusted gap with gold is narrowing, suggesting a shift in its comparative value [3] Market Outlook - Panigirtzoglou forecasts that Bitcoin could reach $126,000 by the end of the year, representing significant upside from its recent price of $108,420 [4] - The decline in Bitcoin's volatility, which has dropped from nearly 60% at the beginning of the year to around 30%, is seen as a positive development for its adoption in the investment community [5] Factors Influencing Volatility - Increased institutional adoption and purchases by ETFs like BRRR are believed to be contributing to Bitcoin's reduced volatility [6] - The growing trend of companies incorporating Bitcoin and Ethereum into their corporate Treasuries is also noted as a factor that may stabilize Bitcoin's price [7] Institutional Investment Potential - There is a realistic expectation that institutional allocations to Bitcoin could align with those of traditional asset classes like gold if volatility levels converge [8]