JPMorgan has said that Bitcoin’s relative long-term value to gold is increasing, even though the cryptocurrency suffered one of its sharpest price declines.
JPMorgan analysts have reportedly published a report in a recent note. said Bitcoin’s profile has become more attractive compared to gold, after the gold outperformed the safe-haven in the last year.
There has been a dramatic divergence in the value of both assets. After October 2025 gold It has grown by roughly one-third, BTC has fallen It has fallen by almost 50% since its high of over $126,000.
The downturn marks four consecutive months of declines — a stretch not seen since before the pandemic. The central banks’ purchases of gold and the renewed safety-haven market drove the price up by 60%. BTC was unable to sustain its momentum, and it underperformed other risk assets.
Nikolaos Panigirtzoglou, global markets strategist at JPMorgan Global Markets, argued however that the gold rally was accompanied by a major shift in market dynamics: an increase in volatility.
The perceived risk difference between BTC and metal has been reduced.
The bank noted that Bitcoin’s volatility in comparison to gold had fallen to an all-time low. In fact, the ratio of bitcoin volatility to gold was drifting to 1.5.
Panigirtzoglou suggested that, on a volatility-adjusted basis, Bitcoin’s market capitalization would need to rise dramatically — theoretically implying a price near $266,000 — to match private sector investment levels in gold.
Although he admitted that such targets were unrealistic for the short term, JPMorgan sees a large upside once negativity fades.
Bitcoins are currently in a crash
Bitcoin is currently at a record high price. crashed sharply Thursday, dipping to $65,000 in volatile trading — marking what appears to be the largest absolute dollar drawdown on record.
According to Bitcoin Magazine Pro, BTC’s retracement from its October highs has been approximately $62,000. This is greater than the nominal drops seen between 2018 and 2022.
JPMorgan also pointed out that BTC is now trading well below its estimated production cost of $87,000 — historically seen as a soft floor.
Analysts note that the price of goods is below cost. could force The marginal costs of the network will be reduced by removing inefficient miner.
JPMorgan reported that liquidation activities have remained relatively modest when compared to past crashes. U.S. listed Bitcoin ETFs, however, continue to experience persistent outflows.
Report: U.S. BTC spot ETFs experienced a $3 billion withdrawal last month. That’s up from $2 billion and $7 billion respectively in December.
BTC was trading at around $66,000 when this article was written.
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Source: bitcoinmagazine.com
