Bitcoin’s price is expected to rise to $126,000 per coin, according to JP Morgan analysts, who believe the asset is becoming more attractive to institutions due to lower volatility.

Currently trading at around $111,950, Bitcoin has seen decreased volatility, leading analysts to compare it to gold and suggest potential price increases by year-end.

Institutional interest in Bitcoin has reduced price swings and volatility, with the emergence of Bitcoin exchange-traded funds in the U.S. contributing to a more stable market environment.

Analysts note the significant decrease in Bitcoin volatility this year, attributing it to increased purchases by corporate treasuries and predicting potential allocations from institutional investors comparable to other asset classes like gold.

Publicly-traded companies like Strategy (NASDAQ: MSTR) have followed MicroStrategy’s lead in purchasing Bitcoin to enhance shareholder returns, resulting in increased stock performance.

Gold is still considered the safe-haven asset of choice, while Bitcoin faces scrutiny over its correlation to traditional assets like gold and tech stocks since its inception in 2009.

Read more at Yahoo Finance: Bitcoin Price ‘Too Low’ as Volatility Dips, Institutional Interest Rises: JP Morgan