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Bitcoin could be undervalued compared to gold, according to new research<\/a> from JPMorgan, which says the world\u2019s largest cryptocurrency has \u201csignificant upside\u201d if the so-called \u201cdebasement trade\u201d continues to gather momentum.<\/p>\n The bank\u2019s analysts estimate bitcoin could climb as high as $165,000 \u2014 roughly 40% above current levels \u2014 based on volatility-adjusted comparisons with gold. The calculation reflects the amount of capital needed to hold bitcoin versus gold and comes at a time when demand for both assets is surging.<\/p>\n \u201cThe steep rise in the gold price over the past month has made bitcoin more attractive to investors relative to gold, especially as the bitcoin-to-gold volatility ratio keeps drifting lower to below 2.0,\u201d the analysts wrote.\u00a0<\/p>\n By JPMorgan\u2019s math, bitcoin\u2019s market cap of $2.3 trillion would need to rise by nearly 42% to match the $6 trillion invested in gold bars, coins, and ETFs when adjusted for relative risk.<\/p>\n Bitcoin did just end the third quarter<\/a> of 2025 at a record high, fueling the belief among investors that Bitcoin\u2019s price will go up further into the final quarter of the year.\u00a0<\/p>\n Bitcoin closed September about 5% higher at roughly $114,000, defying expectations of seasonal weakness. September has often been a difficult month for Bitcoin, but when it has finished higher, the final quarter has tended to deliver outsized gains.<\/p>\n Data shows<\/a> that in years such as 2015, 2016, 2023 and 2024, positive September closes were followed by fourth-quarter rallies averaging more than 50%.<\/p>\n The projection highlights a growing investor shift toward assets viewed as hedges against fiat currency devaluation. That strategy, known as debasement<\/a>, has seen money pour into both bitcoin and gold exchange-traded funds (ETFs) over the past year.<\/p>\n Retail investors are leading the charge, JPMorgan said, with flows into spot bitcoin ETFs initially outpacing gold earlier in 2025.\u00a0<\/p>\n Gold inflows, however, have caught up since August as geopolitical tensions and concerns over fiscal deficits renewed interest in the yellow metal.<\/p>\nBitcoin\u2019s debasement trade<\/h2>\n