Quick Take – What’s Happening?
- Bitcoin is gaining momentum at the expense of gold, according to JPMorgan analysts.
- The shift is fueled by rising corporate interest and support from U.S. state governments.
- From mid-April, gold dropped 8% while Bitcoin surged 18%.
- Investor behavior shows a clear trend: money is moving from gold ETFs to Bitcoin funds.
- JPMorgan sees Bitcoin having more upside due to crypto-specific catalysts.
The Battle of Safe Havens: Gold vs. Bitcoin
For years, investors have turned to both gold and Bitcoin to hedge against inflation and weakening fiat currencies — a strategy known as the “debasement trade.” But in 2025, it’s no longer a win-win. The hedge is turning into a zero-sum game, and right now, Bitcoin is winning.
Between February and mid-April, gold had the upper hand, climbing steadily while Bitcoin remained flat. But according to a report from JPMorgan analysts, led by Managing Director Nikolaos Panigirtzoglou, “Between mid-February and mid-April, gold was rising at the expense of bitcoin. But over the past three weeks, we’ve been observing the opposite.”
Gold Dips, Bitcoin Rises
Since April 22, gold prices have fallen nearly 8%, while Bitcoin has jumped an impressive 18%. It’s not just price movements driving the narrative — investor behavior is shifting too. Funds are flowing out of gold ETFs and into Bitcoin investment vehicles. Futures markets echo the trend, with traders reducing gold positions and increasing bets on Bitcoin.
What’s Fueling Bitcoin’s Strength?
JPMorgan highlights several Bitcoin-specific developments that are adding to its recent strength:
📈 Corporate Accumulation
- Strategy (formerly MicroStrategy) is aggressively buying Bitcoin, aiming to raise $84 billion by 2027, and has already secured 32% of the target.
- Japan-based Metaplanet is also building its Bitcoin reserves, mirroring a growing corporate trend.
🏛️ State-Level Support
- New Hampshire now allows up to 5% of state assets to be invested in Bitcoin and gold.
- Arizona is setting up a digital asset reserve, using airdrops and staking rewards — and importantly, doing so without raising taxes.
According to JPMorgan, these moves could mark the beginning of long-term adoption if more states follow suit.
The Outlook: Bitcoin Has the Edge
JPMorgan analysts expect the gold-versus-Bitcoin tug-of-war to continue throughout 2025. However, thanks to corporate involvement, ETF demand, and rising governmental support, Bitcoin may have the upper hand going forward.
As traditional safe havens evolve, the crypto narrative continues to gain ground — and in the eyes of many analysts, Bitcoin’s future looks brighter than ever.