Quick Take – What is Going On?
JPMorgan analysts believe that bitcoin is gaining traction to the loss of gold.
This change is exacerbated by increased corporate interest and encouragement given by the governments of the U.S. states.
Since the middle of April, gold decreased by 8% whereas the Bitcoin increased by 18%.
The movement of capital is evident among investors: it is no longer of gold ETFs but Bitcoin funds.
JPMorgan believes the crypto-specific stimulus views the upside in Bitcoin.
The Fight of Safe Havens: Gold versus Bitcoin
During most of the past several years, investors flocked to investment gold and Bitcoin in order to bet on deflation and a dilution of the fiat currency system, referred to as a debasement trade.
However, it is not a win win in 2025. The hedge is becoming a zero-sum game and at this moment, Bitcoin is prevailing.
Within this period (February and mid-April), gold prevailed with the trend rising and that of Bitcoin more stagnant.
Yet, in the report provided by the JPMorgan analysts, which Managing Director, Nikolaos Panigirtzoglou, led, it can be stated that between the period of mid-February and mid-April, gold was gaining at the expense of bitcoin.
However, within the last three weeks, we have been seeing just the reverse happening.
Bitcoin heads up, as gold dips
Since April 22, the price of gold has been declining by almost 8 per cent but the price of Bitcoin has soared by a remarkable 18 per cent.
The price action is not the only part of the story that is changing so is the behavior of investors.
Money is pouring out of gold ETFs and into Bitcoin investment mechanisms.
The same trend can also be heard on futures markets, as traders are watering off on gold and betting on Bitcoin.
What is behind the Power of Bitcoin?
JPMorgan says there has been an increasing number of Bitcoin-related developments that are contributing to its newfound strength:
- Corporate Accumulation
Strategy (previously MicroStrategy) is acquiring Bitcoin actively, trying to raise 84 billion dollars to 2027, and is already able to acquire 32% thereof.
Metaplanet, based in Japan, is also stocking up on Bitcoins as companies take to the trend. - State-Level Help
New Hampshire has permitted an investment with up to 5 percent of the state assets in Bitcoin and gold.
Arizona is attempting to form a digital asset reserve in the, airdropping and staking rewards, and most notably, it is not doing it by increasing taxes.
JPMorgan pointed out that such steps might be the start of a long-term adoption in case other states can also adopt that approach.
The Prognosis: Bitcoin Takes a Lead <new dictionary>
JPMorgan analysts can envision the tug-of-war between Bitcoin and gold playing longer into the year 2025.
Nevertheless, Bitcoin might hold the advantage in the future due to the participation of corporates, the demand of ETF, and the increased government support.
There is no doubt that as safe havens become more and more traditional, the crypto story is an upward trend, and from the perspective of numerous analysts, the future of Bitcoin has never been sunnier.