- JPMorgan says Bitcoin is increasingly outperforming gold as investors seek protection from geopolitical instability and currency debasement.
- Sustained inflows into Bitcoin ETFs and stronger futures positioning suggest both retail and institutional investors are raising crypto exposure.
- Strategy’s continued Bitcoin accumulation is reinforcing demand, with JPMorgan estimating purchases could hit US$30 billion (AU$42 billion) this year.
Bitcoin is gaining momentum over gold in the so-called debasement trade, with JPMorgan analysts saying investor flows increasingly favour crypto following the Iran conflict. The bank pointed to sustained inflows into Bitcoin exchange-traded funds alongside continued weakness in gold ETF demand as evidence of changing investor preferences.
In a report headed by Nikolaos Panigirtzoglou, JPMorgan said Bitcoin ETFs have attracted net inflows for three straight months through May. Gold ETFs, meanwhile, remain under pressure after suffering outflows when tensions linked to Iran escalated in March. Analysts said the pattern indicates investors are shifting toward Bitcoin as a hedge against weakening fiat currencies and geopolitical instability.
JPMorgan said the trend extends beyond retail ETF investors. The bank’s positioning measures tracking CME Bitcoin futures and offshore perpetual futures activity have climbed to new highs, suggesting institutional investors are also increasing exposure to Bitcoin. The report further noted that momentum-trading signals tied to Bitcoin have strengthened since the conflict began.
Related: VanEck Says Bitcoin Could Reach US$1 Million Within Five Years
Strategy Buying Adds Further Support
The analysts also identified Strategy as another major source of Bitcoin demand. The company, led by Michael Saylor, has continued aggressively accumulating Bitcoin and has already added 145,834 BTC this year. JPMorgan estimated that, if maintained, the current pace of purchases could amount to approximately US$30 billion (AU$42 billion) over the year.
While JPMorgan acknowledged that gold remains part of the broader debasement trade, the bank said recent ETF flows, futures positioning and corporate Bitcoin buying all suggest safe-haven demand is increasingly moving toward Bitcoin rather than gold.
Related: JPMorgan Says Bitcoin Holds Strong While Gold And Silver Lose Their Shine
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