Bitcoin Undermined by Gold as Investors Seek Traditional Safe Havens

JPMorgan analysts say Bitcoin has failed to meet expectations as a safe-haven asset, as gold and traditional assets attract inflows amid global uncertainty.

Gold Outshines Bitcoin During Market Turbulence

JPMorgan’s latest research casts fresh doubt on Bitcoin’s role as a reliable safe-haven asset, highlighting gold’s continued dominance in times of economic uncertainty. The banking giant’s analysts noted that, while investors have flocked to gold and other traditional safe havens like the Japanese yen and Swiss franc, Bitcoin has seen consistent outflows and diminished demand.

Gold exchange-traded funds (ETFs) registered $21.1 billion in net inflows globally in Q1 2025, according to World Gold Council data cited in the report. Of this, $2.3 billion originated from China and Hong Kong alone — a region that accounted for 16% of total gold ETF assets under management. In contrast, Bitcoin ETFs have seen three consecutive months of outflows, indicating a stark divergence in investor sentiment.

Speculative Appetite for Bitcoin Wanes

The report, led by JPMorgan managing director Nikolaos Panigirtzoglou, emphasized that Bitcoin’s recent performance has been hindered by waning speculative interest. This is evident not only in ETF outflows but also in declining activity in Bitcoin futures markets.

Analysts wrote, 

“Despite a decline in market breadth and liquidity, gold continues to benefit from safe haven flows in a similar fashion to currencies like the Swiss franc and the yen. These safe haven flows are seen in both the ETF and futures spaces.”

The analysts attributed gold’s resurgence to mounting macroeconomic and geopolitical uncertainties, which typically push investors toward more stable assets. Bitcoin, which has long been touted by some as “digital gold,” is not currently reflecting those characteristics.

Bitcoin’s Volatility Undermines ‘Digital Gold’ Narrative

JPMorgan’s skepticism around Bitcoin as a safe haven echoes concerns raised in an earlier report this month, where analysts flagged the cryptocurrency’s high volatility and close correlation with equities as key weaknesses. The report claimed, 

“The volatility of Bitcoin and its correlation with the stock market raises questions about the narrative of Bitcoin as 'digital gold'.”

Currently, Bitcoin has underperformed gold by approximately 29% in 2025, reinforcing doubts among skeptics. Canadian billionaire Frank Giustra recently commented that Bitcoin “has never traded like gold,” a sentiment that appears increasingly validated by recent data.

Diverging Views on Bitcoin’s Dual Role

Despite JPMorgan’s critical stance, some market participants maintain that Bitcoin can exhibit both risk-on and risk-off properties depending on broader market dynamics. Fundstrat’s Tom Lee, for instance, has characterized Bitcoin as “ambidextrous,” capable of adapting to varying investor moods. However, the current trend appears firmly tilted toward traditional assets.

JPMorgan also identified $62,000 as a key support level for Bitcoin in the near term, though its ability to reclaim ground as a safe-haven asset remains uncertain.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice