Despite its long-standing reputation as “digital gold,” bitcoin has moved sharply away from traditional safe havens like gold and silver, but that might not be a bad thing for the future of the digital asset, according to JPMorgan analysts.
Gold surged more than 60% in 2025 on sustained central bank buying and flight-to-safety demand, while bitcoin struggled through 2026, posting repeated monthly declines and underperforming major risk assets. The JPMorgan report suggests that this growing gap reflects bitcoin’s loss of appeal as a hedge against market turmoil.
Digital assets “came under renewed pressure over the past week, as risk assets, particularly technology, came under pressure and gold and silver, the other perceived hedges against a doomsday scenario, saw a sharp correction,” wrote analysts led by Nikolaos Panigirtzoglou.
This sell-off also spilled over into bitcoin and ether spot exchange-traded funds (ETFs), signaling widespread negative sentiment among institutional and retail investors, according to JPMorgan analysts. The bearish sentiment also affected the supply of stablecoins, which contracted, the note said.
“Catastrophic scenario”
However, JPMorgan still sees longer-term arguments in favor of Bitcoin.
The report states that gold has outperformed bitcoin since last October, but with significantly higher volatility, making bitcoin “even more attractive relative to gold.”
In theory, if Bitcoin were to match the recent volatility seen in gold, the price of the digital asset would have to reach almost $266,000 to match the investments made in gold, which analysts say is unlikely. What this low volatility does for Bitcoin is that it highlights Bitcoin’s future potential as a safe haven.
“This volatility-adjusted comparison of $266,000 to gold is in our view an unrealistic target for this year, but it shows the long-term upside potential once negative sentiment is reversed and once bitcoin is once again seen as equally attractive to gold as a potential hedge against a doomsday scenario,” the analysts wrote.
Learn more: Bitcoin Nears Pre-Election Low as ETF Flows Stagnate, Citi Says
