Current Bitcoin valuation is considered undervalued by approximately $16,000 relative to gold, suggesting potential for substantial price growth as market stability and adoption increase.

With Bitcoin trading around $111,950 near its recent all-time high of $124,128, the reduced volatility and valuation gap highlight its growing attractiveness and room for upward movement.

Bitcoin's volatility has decreased significantly from nearly 60% at the start of 2025 to about 30%, making it more appealing to institutional investors and drawing comparisons to traditional safe-haven assets like gold.

The 200-day moving average continues to serve as a strong technical support level, supporting a long-term bullish outlook despite some short-term caution reflected in options market hedging.

Global inclusion of Bitcoin in major indices, such as FTSE Russell's upgrade of Metaplanet and its inclusion in the FTSE All-World Index, has driven passive inflows and increased market stability.

Institutional interest is expanding, with companies like KindlyMD and BSTR adopting Bitcoin as a reserve asset or aiming to become major corporate holders, while a future price target of $1.3 million by 2035 has been predicted by Bitwise.

Market dynamics show passive investment through index funds contributing to steady demand, reducing reliance on speculative trading.

There is an ongoing debate about Bitcoin's role as 'digital gold' and its correlation with U.S. equities, particularly tech stocks, over the years.

New entrants like Adam Back's firm are entering the market to compete with established crypto treasuries such as MARA Holdings and MicroStrategy.