Bitcoin is breaking ahead: JPMorgan predicts it will outpace gold by the end of 2025
Date: 2025-05-16 Author: Henry Casey Categories: CRYPTO PAYMENTS
JPMorgan experts predict that in the second half of this year, Bitcoin will continue to strengthen and will outpace gold in growth rates. They say the main reason for this is active investments from corporations and the expansion of institutional support for digital assets in a number of American states. This is reported by The Block.
According to analysts, the previously popular debasement trade strategy, which involved protecting capital by investing in assets resistant to inflation, has entered a phase of rivalry between Bitcoin and gold. Since the beginning of the year, both instruments have alternately strengthened due to the weakening of the other. Thus, from February to April, gold had the advantage, but in recent weeks, Bitcoin has seized the initiative.
According to JPMorgan, since reaching its peak on April 22, the price of gold has fallen by almost 8%, while Bitcoin has risen by 18%. Similar changes are observed in the distribution of capital: investors have begun to transfer funds from ETFs related to precious metals to spot and cryptocurrency funds.
The futures market confirms this trend - positions in gold contracts are decreasing, and interest in Bitcoin futures is steadily growing. At the beginning of the year, the situation was the opposite, which emphasizes the reversal in the mood of market participants.
One of the key factors supporting Bitcoin has been the active participation of companies. Strategy and Metaplanet continue to increase their reserves of the first cryptocurrency. In particular, Michael Saylor's company has already fulfilled 60% of its goal to attract $42 billion to buy BTC by 2027.
Bitcoin is receiving additional support from a political initiative in the United States. The states of New Hampshire and Arizona have begun to promote initiatives in the field of digital assets, and experts believe that further expansion of this list can strengthen the position of cryptocurrency.
Analysts also note the development of the crypto derivatives market as a positive trend. In particular, JPMorgan mentioned the deals of Coinbase to acquire Deribit, Kraken - Ninjatrader, as well as Gemini receiving a license to offer derivatives in European countries.
Other think tanks are also observing an increase in interest in digital assets. UBS reports a shift in the focus of wealthy clients in Asia from dollar investments to gold and cryptocurrencies, and Galaxy Digital emphasizes the growing status of Bitcoin as digital gold. According to NYDIG and QCP Capital, after Donald Trump's "Liberation Day", the cryptocurrency has strengthened its position as a safe haven asset.
