Bitcoin is proving more resilient than traditional safe-haven assets as gold and silver are under pressure from capital outflows, unwinding of positions and deteriorating liquidity, according to Wall Street investment bank JPMorgan.
“The deterioration in liquidity conditions for gold has seen the scale of its market
currently lower than bitcoin,” analysts led by Nikolaos Panigirtzoglou wrote in Wednesday’s report.
Bitcoin has shown relative resilience in recent weeks following the outbreak of war in Iran, even after a sharp correction from its all-time highs in October.
The cryptocurrency initially fell sharply alongside broader risk assets, briefly falling into the $60,000 range and triggering large sell-offs as investors rushed to reduce risks amid geopolitical uncertainty.
But the liquidation proved short-lived. Prices have since stabilized between $60,000 and $70,000, although tensions persist and oil prices exceed $100 per barrel.
The price action suggests that Bitcoin is behaving less like a pure safe haven in the immediate shock phase and more like a high-beta macro asset, selling off initially and then finding support as flows return and longer-term holders step in once the panic subsides.
Gold has fallen about 15% since the start of the month, reversing a massive rally that pushed prices to record highs near $5,500 in January. Silver, which peaked near $120, followed a similar downward trajectory. JPMorgan analysts attributed the selloff to rising interest rates, a stronger U.S. dollar and broad profit-taking by retail and institutional investors.
Flow data reinforces this change. Gold ETFs saw outflows of nearly $11 billion in the first three weeks of March, while silver ETF inflows accumulated since last summer were unwound, the report said. In contrast, Bitcoin funds continued to attract net inflows over the same period.
Positioning data tells a similar story. JPMorgan’s gauge for institutional activity, based on Chicago Mercantile Exchange (CME) futures open interest, shows a sharp increase in exposure to gold and silver through the end of 2025 and early 2026, followed by a sharp decline since January as investors reduced their positions. In comparison, Bitcoin futures positioning has remained relatively stable in recent weeks.
Momentum signals also diverge. The bank noted that trend-following investors, such as Commodity Trading Advisors (CTA), have been aggressively reducing their exposure to gold and silver, with indicators moving from overbought levels to below neutral. This change in positioning has likely amplified recent price drops. Meanwhile, Bitcoin’s momentum is recovering from oversold conditions to reach neutrality, suggesting that selling pressure may be easing.
Liquidity conditions further underline this divergence. The scale of the gold market has deteriorated to the point where it now lags behind Bitcoin, a reversal of the usual relationship. Silver liquidity has weakened further, with reduced market depth exacerbating recent price movements, the report added.
The world’s largest cryptocurrency was trading around $69,000 at press time. Gold traded around $4,450/oz and silver $69/oz.
Learn more: Wall Street Broker Bernstein Calls Bitcoin Bottom, Maintains Year-End Target of $150,000
