JPMorgan Warns Bitcoin’s ‘Digital Gold’ Narrative Faces Pressure Amid Gold’s Strength

• Gold has surged past $3,100 in 2025 as investors favor it over volatile Bitcoin for long-term stability.
• Steady inflows into gold ETFs and outflows from Bitcoin funds reflect a clear shift toward traditional safe-haven assets.

Gold is attracting record-breaking interest in 2025, gaining strength as investors grow cautious about Bitcoin’s wild price swings. According to JPMorgan analysts led by Nikolaos Panigirtzoglou, the traditional safe-haven metal has become the frontrunner in what they call the “debasement trade.” The investment trend focuses on assets that can withstand inflation, debt pressure, and the erosion of fiat currency value.

JPMorgan’s recent note flags concern over Bitcoin’s reliability in this strategy. The analysts wrote, “Bitcoin’s volatility and correlation with equities raise questions over its ‘digital gold’ narrative.” Their view suggests that as economic uncertainty grows, gold — not Bitcoin — is stealing the spotlight.

Gold has jumped above $3,100 per ounce in 2025, setting new records. That surge reflects investor confidence in gold as a stable hedge, while Bitcoin, despite hovering around $83,700, has not kept pace.

Investors Flock to Gold ETFs as Bitcoin Funds Bleed

In February and March, gold exchange-traded funds (ETFs) saw steady inflows. On the other hand, Bitcoin ETFs faced consistent outflows over those same two months. That pattern signals a growing tilt in investor sentiment away from crypto and toward traditional assets.

Meanwhile, the broader futures market adds more weight to this shift. Bitcoin futures positions flipped negative since mid-January. In contrast, gold futures stayed flat, indicating more stable interest from investors. The report points out that this gold demand isn’t coming from quick-profit seekers. Instead, central banks and private investors are behind the buying spree.

At this point, gold has climbed to claim about 3.5% of total global financial assets — roughly $9 trillion. Of that, $4 trillion is held by central banks and $5 trillion by private investors. These are not small-time speculators chasing a rally — this is deep-pocket investment making a firm bet on gold’s reliability.

Bitcoin Support May Hinge on $62,000 Production Level

Even with recent struggles, Bitcoin isn’t collapsing. JPMorgan’s report still sees support around its estimated production cost, currently about $62,000. Panigirtzoglou said:

Yes it could be viewed this way especially the production cost [$62,000] which historically acted as floor.

That level has served as a kind of bottom for Bitcoin in the past. Still, the analysts peg Bitcoin’s volatility-adjusted value around $71,000 — far lower than its current price. That estimate comes from comparing it to gold’s $5 trillion private investor holdings while factoring in Bitcoin’s greater risk.

The trouble is that Bitcoin’s earlier gains through late 2024 seem to be fading. The JPMorgan team noted that it underperformed so far in 2025, mainly due to its past outperformance and its deep ties to tech stocks — a sector known for its rollercoaster moves.