- JP Morgan analysts report that Bitcoin currently has more potential upside compared to Gold.
- Recent acquisitions by Coinbase, Kraken, and Gemini signal a growing and maturing crypto derivatives market.
- ETF inflows for Bitcoin have outpaced gold ETFs since December, indicating rising institutional interest.
- Gold prices may go up if major trade talks with China change, but Bitcoin has outperformed gold over the past year.
JP Morgan analysts stated that Bitcoin offers greater potential growth than gold as of this week. The analysts pointed to ongoing trends in the cryptocurrency market, recent corporate deals, and increased participation from institutional investors.
Bitcoin is trading at around $104,000, about 5% below its all-time high set in January. Throughout the past year, Bitcoin ETFs have attracted more new investment than gold ETFs, according to K33 Research.
The JP Morgan report cited several crypto-related developments. This includes acquisitions such as Coinbase’s purchase of Deribit, Kraken’s acquisition of NinjaTrader, and Gemini gaining a license to offer derivatives in Europe. The analysts led by Nikolaos Panigirtzoglou wrote, “We expect the year-to-date zero-sum game between gold and Bitcoin to extend to the remainder of the year, but are biased towards crypto-specific catalysts creating more upside for Bitcoin over gold into the second half of the year.”
The analysts noted that the growing market for Bitcoin futures and derivatives is coming under U.S. and EU regulations. This regulatory progress is expected to increase confidence and attract more traditional investors.
Both gold and Bitcoin prices have risen over the past year as investors look for protection from inflation and global economic uncertainty. However, Bitcoin’s performance has surpassed gold’s during this period. Gold currently trades at $3,230, down from April’s record of $3,500. Meanwhile, Bitcoin’s latest price is $103,800, just below its early-year record of nearly $109,000.
Michael Petch, CEO of digital precious metals platform Argo, said gold prices may increase if tariff negotiations with China change after a current pause. The JP Morgan report also emphasized that while Bitcoin is sometimes called a “safe-haven” asset, it often follows trends seen in the stock market, acting as a risk-on investment.
Last December, Bitcoin ETFs surpassed gold ETF inflows. As of May, Bitcoin ETFs are outpacing gold ETFs in new investments.
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