Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
JPMorgan says Bitcoin stability will bring bigger investors back in

JPMorgan says Bitcoin stability will bring bigger investors back in

CryptopolitanCryptopolitan2025/08/29 01:35
By:By Jai Hamid

Share link:In this post: Bitcoin’s volatility dropped from 60% to 30% in 2025, according to JPMorgan. JPMorgan says lower volatility could bring institutional investors back. Corporate treasurers now hold over 6% of Bitcoin, reducing market swings.

Bitcoin isn’t jumping around like it used to. JPMorgan says the wild swings have cooled off. At the start of 2025, Bitcoin’s volatility sat at 60%. Now it’s around 30%.

That’s not just a stat for nerds, that drop could pull big institutional investors back into the space. The kind that dipped the hell out when Bitcoin kept acting like a drunk teenager.

Nikolaos Panigirtzoglou, a strategist at JPMorgan, said Thursday that if Bitcoin’s volatility keeps falling and starts to match more traditional assets like gold, then investment allocations could follow.

“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,” he wrote. Right now, that convergence is real. According to him, the gap between gold’s and Bitcoin’s volatility is “the lowest on record.”

Corporate pullback helps tighten volatility

There’s a reason this is happening. Over the past year, a lot of corporate treasurers have been yanking their Bitcoin out of circulation. That’s not some small event.

According to JPMorgan, this “intense withdrawal” has had a real effect. More coins are being held passively. Less trading. Less panic selling. Less hype buying. That’s been working like a brake on the madness.

These treasurers, mostly copycat versions of MicroStrategy, have actually grabbed more than 6% of Bitcoin’s entire supply.

See also US borrowing costs at risk as Trump escalates fed criticism

They’re also getting added into global equity indices. That gives them even more legitimacy and more eyes. JPMorgan says this trend is “helping to make Bitcoin more attractive from a valuation point of view.”

It all comes back to risk. Panigirtzoglou explains it clearly: institutional investors don’t like throwing their cash at anything that sucks up too much risk capital. He said:

“The reason is that, for most institutional investors, the volatility of each class matters in terms of portfolio risk management and the higher the volatility of an asset class, the higher the risk capital consumed by this asset class.”

Translation: calmer coins mean more comfortable investors. Bitcoin’s current market cap sits at about $2.2 trillion. To match gold’s $5 trillion in private sector investment, but adjusted for volatility, Bitcoin would need to climb 13% from where it is now.

That would push the price up to around $126,000. That number isn’t just pulled from thin air. It’s only a little above the record Bitcoin already set last weekend.

Right now, though, Bitcoin’s price is lagging behind. Panigirtzoglou said, “The gap between the Bitcoin price and our volatility-adjusted comparison to gold shifted from highly positive territory at the end of 2024,” back when it was around $36,000, “to negative territory currently,” meaning the current price is roughly $16,000 too low. That’s a big gap.

See also Cristiano Ronaldo CR7 meme coin dumps following $143M rug pull

According to him, that gap means one thing: “some upside potential for Bitcoin currently.” As of Thursday, Bitcoin was trading about 10% lower than its recent all-time high. So it’s close. But not quite there.

KEY Difference Wire helps crypto brands break through and dominate headlines fast

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

The Case for Ethereum as a Core Institutional Asset

- Ethereum’s 10-year price surge of 1.2 million percent and institutional adoption redefine digital-age value creation. - Proof-of-stake transition and Pectra upgrade enhance security, driving $223B DeFi TVL and 3–6% staking yields. - Institutional Ethereum ETFs attract $7.1B in 2025, with Wall Street endorsing it as a secure, high-yield asset. - GENIUS Act and stablecoin infrastructure solidify Ethereum’s role in tokenizing real-world assets and institutional portfolios.

ainvest2025/08/30 03:15
The Case for Ethereum as a Core Institutional Asset

Litecoin (LTC) and Avalon X (AVLX): Contrasting Paths in a Shifting Crypto Market

- - In a maturing crypto market, investors diversify by balancing Litecoin's institutional stability ($110.23) with Avalon X's RWA innovation ($0.005). - - Litecoin shows 75% long-term holders and $2.8B daily volume, while Avalon X tokenizes luxury real estate with 7% annual burns and 15% staking rewards. - - LTC's ETF potential and corporate adoption contrast with AVLX's $16T RWA market exposure, offering defensive vs speculative investment profiles. - - Both projects highlight crypto's evolution toward b

ainvest2025/08/30 03:15
Litecoin (LTC) and Avalon X (AVLX): Contrasting Paths in a Shifting Crypto Market