Bitcoin is feeling pretty confident these days, so much so that JP Morgan analysts believe it’s got more upside than gold, continuing a trend that’s been heating up lately. The biggest digital asset by market value has been rallying, and the analysts aren’t shy about saying it could keep climbing.
What’s been fueling Bitcoin’s rocket? Well, it’s a mix of juicy catalysts like growing corporate treasury allocations and some new laws (both proposed and actual) that let states put their money into Bitcoin. Add to that some recent power moves by crypto heavyweights Coinbase and Kraken snapping up futures and derivatives platforms, and you’ve got a market that’s maturing fast.
JP Morgan’s head analysts, led by Nikolaos Panigirtzoglou, put it like this:
“We expect the year-to-date zero-sum game between gold and Bitcoin to extend to the remainder of the year, but are biased towards crypto-specific catalysts creating more upside for Bitcoin over gold into the second half of the year.”
Translation: Bitcoin’s got the edge for now.
Bitcoin just breezed past $105,800, its highest since late January, and just 5% shy of that all-time high it hit earlier this year. Investors have been hopping back on risk assets lately, with Bitcoin leading the parade.
Gold and Bitcoin Battle on Multiple Fronts
Still, gold prices may climb further if there are new developments in the ongoing tariff negotiations with China once the current 90-day pause ends, Michael Petch, CEO of digital precious metals platform Argo, told.
The two assets have climbed steadily over the past year as investors fretted about inflation and wider macro uncertainties, although Bitcoin has outpaced gold throughout that period.
Last December, Bitcoin ETFs overtook their gold counterparts for net inflows, according to K33 Research. As of May, Bitcoin ETFs are outpacing gold ETFs in new inflows.
In the United States, Bitcoin ETF AUM has surpassed gold ETF AUM.
— Vetle Lunde (@VetleLunde) December 17, 2024
Gold, with a 20-year head start, has been flipped. pic.twitter.com/nyCWtKtQaB
Gold is trading at $3,230, down from its April all-time high of $3,500. Bitcoin was trading hands for $103,800, just below its January 20 record of nearly $109,000.
Crypto Derivatives Market Matures with Big Moves
Even though some fans still call Bitcoin a “safe haven,” JP Morgan reminds us it’s mostly been acting like a risk-on asset, moving in sync with stocks rather than flying solo.
On the derivatives front, JP Morgan pointed out some recent headline grabs: Coinbase snagging Deribit, Kraken buying U.S. futures platform NinjaTrader, and Gemini grabbing a license to sell derivatives in Europe. These moves suggest the crypto derivatives market is growing up and, crucially, getting cozy with U.S. and EU regulators.
As the analysts noted, this regulatory embrace “could induce confidence and greater participation by traditional institutional investors.” In other words, the big money might finally be coming to the crypto party.
HODL Team
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
