- Gold has dropped 8% since 22 April while Bitcoin has risen 18%.
- Factors such as increased corporate accumulation and government adoption of Bitcoin are driving the shift.
- JP Morgan analysts expect the momentum to continue through the rest of 2025.
With global markets shifting, investors are increasingly choosing Bitcoin over gold, signalling a preference for digital assets, according to analysts from JP Morgan. The “debasement trade”, where both Bitcoin and gold were used to hedge against weakening fiat currencies, was in play earlier this year, but that dynamic has since flipped.
Nikolas Panigirtzoglou, Managing Director at JP Morgan, said, “From mid-February to mid-April this year, the rise in gold prices negatively affected Bitcoin, but in the past three weeks, Bitcoin has been pushing out gold and rising.”
Gold has fallen nearly 8% since peaking on 22 April, while Bitcoin has climbed 18% – a trend that is also visible in investor flows. Capital has moved from gold exchange-traded funds (ETFs) to Bitcoin and crypto funds, with futures data showing that gold positions have declined while Bitcoin futures have risen.
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Key Crypto Catalysts Powering Bitcoin’s Recent Momentum
JP Morgan highlights a series of crypto-specific factors that are driving this shift:
- Corporate Accumulation – Major companies like Strategy (formerly known as Microstrategy) and Metaplanet are continuing to buy large tranches of Bitcoin. Strategy has already acquired more than half its US$42 billion (AU$64.5 billion) target of Bitcoin and is actively raising another US$42 billion by 2027 for further acquisition.
- Government Bitcoin Adoption – US States have begun to add Bitcoin to their treasury reserves. For example, New Hampshire has updated its legislation to allow up to 5% of its state assets to be invested in Bitcoin. Arizona is creating a digital asset reserve supported by staking rewards and airdrops.
- Improving infrastructure – Major crypto exchanges are taking steps for broader institutional engagement raising confidence in Bitcoin. Coinbase and Kraken have respectively acquired Deribit and NinjaTrader. Gemini can now offer derivatives across Europe.
This trend could continue in the second half, and Bitcoin’s unique positive factors are likely to create additional upward momentum.
Nikolas Panigirtzoglou, Managing Director at JP MorganDespite gold’s earlier rise, Bitcoin has regained ground, and JP Morgan’s analysts are forecasting that Bitcoin’s momentum will continue to outpace gold in the second half of 2025.
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