Bitcoin As “Digital Gold” Narrative At Danger: JPMorgan

JPMorgan mentioned that Bitcoin’s standing as “digital gold” is weakening because the crypto lags behind the surging worth of gold, which hit a file $3,167 earlier at this time.

The gold worth traded down a little bit greater than 1% at $3,124 at 10:31 a.m. EST after paring earlier beneficial properties, whereas Bitcoin slumped virtually 4% to $82,219 after US Donald Trump unleashed a barrage of commerce tariffs in opposition to the remainder of the world yesterday.

Gold’s outperformance is proof that buyers nonetheless favor the commodity over BTC in occasions of macroeconomic uncertainty, mentioned JPMorgan analysts led by Nikolaos Panigirtzoglou in an April 2 report.

Danger property are tanking after hours as Trump’s tariffs are worse than anticipated. Dow futures are already down over 1,000, which is 2.5%. S&P futures are down 4%, and NASDAQ futures are down 4.5%. Bitcoin is simply down 3.5%. Gold, nonetheless, the true protected haven, hit a brand new file excessive.

— Peter Schiff (@PeterSchiff) April 2, 2025

The technique of shopping for property like gold and Bitcoin to hedge in opposition to inflation, weakening fiat currencies and long-term debt is called the debasement commerce.

The analysts went on to foretell that this development will persist, including that they “see gold persevering with to rise as the key beneficiary of the debasement commerce.”

Bitcoin’s volatility and correlation with equities additionally raises questions over its ”digital gold’ narrative,” they added.

Gold ETFs See Inflows Whereas Bitcoin ETFs Report Outflows In February And March

The sample of buyers favoring gold over Bitcoin may also be seen in ETF (exchange-traded fund) flows, in accordance with the JPMorgan analysts.

Spot Bitcoin ETFs have seen outflows over the previous two months, which is in stark distinction to the continued inflows into gold ETFs, they mentioned.

In the meantime, Bitcoin futures have additionally turned detrimental since January, whereas gold futures have remained comparatively flat. This, in accordance with the analysts, means that demand for gold is coming from personal buyers and central banks relatively than speculative merchants.

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