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
Bitcoin's Evolving Risk Profile: A Gateway for Institutional Capital

Bitcoin's Evolving Risk Profile: A Gateway for Institutional Capital

ainvest2025/08/29 12:45
By:BlockByte

- Bitcoin's volatility dropped to 30% in 2025, narrowing its 2:1 gap with gold's 15% and boosting institutional adoption. - JPMorgan estimates BTC is undervalued by $16,000 vs. gold, with 59% of institutional portfolios now allocating to Bitcoin post-BITCOIN Act. - Corporate treasury holdings (6% of BTC supply) and $132.5B ETF inflows reduced manipulation risks but exposed late-2025 divergence from gold. - Analysts warn Bitcoin's reduced volatility may limit future outperformance, despite retaining digital

Bitcoin’s journey from a speculative asset to a cornerstone of institutional portfolios has been marked by a dramatic shift in its risk profile. In 2025, Bitcoin’s volatility plummeted to historic lows of 30%, narrowing the gap with gold’s 15% volatility and creating a 2:1 volatility ratio between the two assets [1]. This convergence has redefined Bitcoin’s appeal, positioning it as a less volatile alternative to traditional safe-haven assets while retaining its digital-native advantages.

The implications for institutional capital are profound. JPMorgan estimates Bitcoin is undervalued by $16,000 relative to gold, citing its improved volatility metrics and growing corporate adoption [1]. Over 6% of Bitcoin’s total supply is now held in corporate treasuries, enhancing liquidity and reducing market manipulation risks [1]. This shift has been amplified by the U.S. BITCOIN Act of 2025, which catalyzed $132.5 billion in spot ETF inflows, with 59% of institutional portfolios now allocating to Bitcoin [2].

However, Bitcoin’s evolving risk profile is not without challenges. While it outperformed gold and the S&P 500 by 375.5% from 2023 to 2025, late-2025 market dynamics revealed a divergence: gold rose 16% while Bitcoin fell over 6% [4]. Analysts like Mike McGlone of Bloomberg Intelligence warn that Bitcoin’s reduced volatility may erode its speculative allure, potentially limiting its ability to outperform gold in future cycles [3].

For institutional investors, the key lies in balancing Bitcoin’s newfound stability with its historical growth potential. The asset’s transition from a high-risk, high-reward proposition to a more predictable store of value mirrors gold’s role in diversified portfolios. Yet, as Bitcoin’s volatility aligns with gold’s, its unique advantages—such as programmability and 24/7 liquidity—remain underappreciated.

The coming months will test whether Bitcoin can sustain its institutional momentum amid macroeconomic shifts. While the volatility convergence has opened the door for large-scale capital, the recent divergence underscores the need for nuanced strategies that account for both digital and traditional market dynamics.

**Source:[1] Bitcoin (BTC) Price Prediction: JPMorgan Says BTC Undervalued Versus Gold as Volatility Drops to Record Low [2] Bitcoin as a Corporate Treasury Strategy: Why Institutional Adoption Outperforms Traditional Assets [3] Bitcoin's Volatility Hits Record Low Versus Gold, Raising Doubts Over Future Outperformance [4] Gold and Bitcoin Decouple. What's Driving the Divergence?

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

Americans Still Optimistic, But Fears of Affordability and Inflation Weigh Heavy

- U.S. consumer sentiment fell to 58.2 in August, below expectations, reflecting economic uncertainty amid inflation concerns. - Persistent inflation and stagnant wage growth have kept confidence below pre-pandemic levels despite core inflation easing. - The index remains above 50, indicating cautious optimism, but declining trends signal potential slowdowns in consumer-driven growth. - Income disparities highlight fragmented outlooks, with lower-income households expressing stronger affordability and job

ainvest2025/08/29 14:18
Americans Still Optimistic, But Fears of Affordability and Inflation Weigh Heavy

Reliance and Tech Giants Forge AI Backbone to Power India’s Digital Future

- Reliance Industries, led by Mukesh Ambani, partners with Google and Meta to build India’s AI infrastructure via Reliance Intelligence, targeting energy, retail, telecom, and finance sectors. - Google collaboration includes a Jamnagar data center leveraging Jio’s network and clean energy, while Meta’s $100M joint venture deploys Llama-based AI for enterprise solutions. - Strategic alliances deepen U.S. tech firms’ India presence, following prior Jio investments, as Reliance aims to lead digital transforma

ainvest2025/08/29 14:18
Reliance and Tech Giants Forge AI Backbone to Power India’s Digital Future

Inflation Stalls Fed's Rate Cut Hopes Amid Tariff-Driven Price Surge

- US core PCE inflation held at 2.9% YoY in July, exceeding Fed's 2% target for five months amid persistent price pressures. - Trump-era tariffs and rising goods prices (0.35-0.40% MoM) fuel inflation, with services inflation showing stubborn upward momentum in shelter, healthcare, and travel costs. - Markets price 88% chance of 0.25-point Fed rate cut in September after weak jobs data, but Bank of America/Morgan Stanley warn of overestimating easing likelihood. - Gold dips pre-PCE release as dollar streng

ainvest2025/08/29 14:18
Inflation Stalls Fed's Rate Cut Hopes Amid Tariff-Driven Price Surge

Bitcoin's 2026 Price Outlook: Macroeconomic Tailwinds and Whale Activity as Catalysts for a $120K Target

- Bitcoin's 2026 price trajectory is driven by macroeconomic tailwinds, institutional adoption, and whale activity, with a $120K target projected. - Inflationary pressures and Fed policies bolster Bitcoin's appeal as a hedge, while ETF inflows ($70B AUM) and corporate holdings (e.g., MicroStrategy's 630K BTC) normalize institutional adoption. - Whale transactions ($4.35B transfers) and UTXO consolidation signal strategic accumulation, though volatility risks persist amid macroeconomic uncertainty and regul

ainvest2025/08/29 14:15
Bitcoin's 2026 Price Outlook: Macroeconomic Tailwinds and Whale Activity as Catalysts for a $120K Target