- JPMorgan analysts stated Bitcoin‘s long-term appeal relative to Gold has strengthened due to gold’s recent rally and increased volatility.
- The bank noted Bitcoin’s volatility relative to gold has fallen to a record low, improving its risk-adjusted profile.
- The firm’s strategist said the widening divergence since October has made Bitcoin increasingly attractive for long-term investors.
- Despite broader market weakness, the impact on crypto appears contained, according to the report.
Analysts at global investment bank JPMorgan stated on Thursday that Bitcoin’s attractiveness for long-term investors has increased compared to gold. Their assessment followed gold’s recent price rally and a significant rise in its volatility, according to a report by Investing.com.
Consequently, the firm noted that Bitcoin’s risk-adjusted profile has improved markedly. This improvement stems from Bitcoin’s volatility relative to gold falling to a record low.
JPMorgan’s Nikolaos Panigirtzoglou directly addressed the shifting dynamic between the two assets. He said “the widening divergence between the two assets since last October has made Bitcoin increasingly attractive for long-term investors.”
Meanwhile, crypto markets are facing pressure from broader risk-asset weakness and a pullback in precious metals. However, the firm added that this negative impact appears contained.
Bitcoin was trading about 5% lower at $69,388 at the time of the report, falling below the $70,000 mark. Spot gold (XAU/USD) was concurrently down 2.2% at $4,856 per ounce.
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