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Bitcoin’s upward momentum seems to be on hold. With gold gaining strength, analysts are increasingly questioning Bitcoin’s role as a haven asset. Notably, the insights from JPMorgan analysts are quite revealing.
Bitcoin is losing ground to gold in financial markets
The concept of BTC as digital gold is currently being challenged. JPMorgan reports that investors are reassessing their protection strategies against inflation and economic turbulence. Consequently, substantial funds are shifting from Bitcoin ETFs to those backed by gold.
The precious metal has just surpassed the $3,100 per ounce mark, attracting over $9 trillion in investments. In contrast, digital assets are suffering due to their inherent volatility. In this regard, JPMorgan analysts have pointed out:
“The correlation of bitcoin with tech stocks calls into question its role as a safe haven asset.”
Moreover, central banks are also playing a significant role in this gold rush, holding around $4 trillion in gold compared to only $5 trillion in gold held by private investors. Since the start of 2025, Bitcoin has consistently underperformed.
Could the production cost of BTC become its floor?
Confidence in Bitcoin seems to be wavering. Nonetheless, it has one significant advantage: its production cost, currently estimated at $62,000. According to analysts at JPMorgan, this figure serves as a form of empirical support.
However, this support remains delicate. Bitcoin ETFs have seen notable net outflows since the beginning of the year, and positions in futures contracts have turned negative, indicating a gradual withdrawal of crypto investors.
The challenge for bitcoin thus remains twofold:
- Reestablish its credibility as a safe haven;
- Differentiate itself from its growing correlation with technology stocks.
One thing is for sure: Bitcoin is currently struggling under the weight of gold, driven by institutional investments. It will be interesting to see whether the most prominent cryptocurrency can turn the tide in the coming months!
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My name is Ariela, and I am 31 years old. I have worked in web writing for 7 years. I discovered trading and cryptocurrency a few years ago, and I’m fascinated by this field. The topics discussed on the platform enrich my knowledge. In my free time, I enjoy singing and have a deep passion for music, reading, and animals!
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author and should not be construed as investment advice. Please conduct your own research before making any investment decisions.
