Bitcoin (BTC) is trading too cheap relative to gold as its volatility falls to historic lows, Wall Street bank JPMorgan (JPM) said in a research report Thursday.

The bank highlighted that bitcoin’s six-month rolling volatility has dropped from nearly 60% at the start of the year to about 30% today, the lowest on record.

With volatility converging toward gold, the world's largest cryptocurrency is now only twice as volatile, the lowest ratio on record, the report noted.

JPMorgan argued that the digital asset is increasingly attractive for institutional portfolios.

On a volatility-adjusted basis, bitcoin’s market cap would need to rise 13%, implying a price of about $126,000, to match gold’s $5 trillion in private investment. By the bank’s models, bitcoin is currently undervalued by arou

See Full Page