JPMorgan is taking a more nuanced view of Bitcoin’s recent struggles.
While gold surged more than 60% in 2025 on strong central bank demand, #Bitcoin has moved in the opposite direction, underperforming both traditional safe havens and several risk assets. On the surface, that divergence looks like a blow to the “digital gold” narrative.
But JPMorgan’s analysts say the story might not be that simple.
According to the bank, gold’s outperformance has come with much higher volatility. In contrast, Bitcoin’s lower volatility could actually make it more attractive over the long term—especially if sentiment shifts and it regains its role as a hedge against extreme economic scenarios.
In fact, the bank noted that if Bitcoin were to match gold’s volatility-adjusted flows, the price would theoretically need to climb toward $266,000.
The takeaway: short-term weakness doesn’t necessarily invalidate the long-term thesis. For some analysts, the current divergence may simply be a reset phase before the next leg of the “digital gold” narrative.