JPMorgan analysts forecast stronger upside potential for bitcoin compared to gold in the second half of 2025. Traditionally, both assets have been seen as hedges against weakening fiat currencies, but recently, their performance has become a zero-sum game. From mid-February to mid-April, gold gained ground while bitcoin lagged. However, over the past few weeks, bitcoin has surged, rising 18% since late April, while gold has dropped nearly 8%.
Investor flows mirror this shift, with funds moving out of gold ETFs into bitcoin and crypto funds. Key crypto-specific catalysts are driving bitcoin’s momentum: major companies like Strategy plan massive bitcoin purchases, and some U.S. states are incorporating bitcoin into their reserves. Meanwhile, the growing maturity of the crypto derivatives market and institutional interest is adding fuel to bitcoin’s rise.
With gold softening and these unique drivers in play, JPMorgan sees bitcoin’s growth potential outshining gold for the rest of the year.
Conclusion:
Bitcoin’s unique adoption trends and evolving market dynamics suggest it could hold greater promise than gold as a digital hedge in the coming months.
Takeaways:
Bitcoin rose 18% since late April, gold dropped 8%.
Funds are shifting from gold ETFs to bitcoin and crypto assets.
Corporate and state-level bitcoin adoption is growing.
Crypto derivatives market maturation boosts institutional confidence.
JPMorgan favors bitcoin’s upside over gold in H2 2025.
Source: The Block
