JPMorgan’s recent analysis shows Bitcoin is losing its appeal as a safe-haven asset, as gold garners significant inflows and reasserts dominance. Bitcoin has experienced three months of ETF outflows with decreased speculative interest, contrasting with gold’s consistent demand from institutional investors. The report highlights $62,000 as Bitcoin’s critical support level.
JPMorgan has indicated a notable shift in market dynamics, revealing that Bitcoin’s demand as a safe-haven asset is rapidly declining, while gold is experiencing substantial inflows. This situation highlights gold’s resurgence in the global asset market for safety amidst economic volatility.
In a recent research note, JPMorgan analysts under the leadership of Nikolaos Panigirtzoglou, remarked that Bitcoin is losing its safe-haven appeal. The report specifically mentioned that Bitcoin has not benefitted from the safe-haven flows that are currently enhancing gold’s position. Furthermore, the cryptocurrency has faced three consecutive months of ETF outflows and a decrease in speculative interest in its futures market.
Conversely, gold has consistently attracted capital from both institutional and speculative investors. Despite a decline in market breadth and liquidity, gold remains appealing to safe-haven flows, akin to currencies such as the Swiss franc and yen, as seen through both ETF and futures markets. In the first quarter of 2025, global gold ETFs recorded $21.1 billion in net inflows, with $2.3 billion sourced from ETFs in China and Hong Kong.
Earlier this month, JPMorgan expressed concerns regarding Bitcoin’s diminishing status as a safe-haven asset. They noted that the narrative of Bitcoin as “digital gold” is under increasing pressure while gold benefits from greater demand. The report further highlighted gold’s leading role in the ongoing debasement trade, which Bitcoin struggles to partake in effectively, as it remains a key beneficiary.
JPMorgan continues to view Bitcoin’s estimated production cost as a vital price indicator despite challenges and concerns about its market performance. Analysts identified $62,000 as crucial support based on this production cost metric, reaffirming that gold is still regarded as the primary asset benefiting from currency debasement.
