Key Takeaways
- J.P. Morgan analysts forecast that Bitcoin (BTC) may surpass gold in performance through the rest of 2025, citing growing investor preference for the cryptocurrency
- Corporations like Strategy and Metaplanet are significantly increasing Bitcoin holdings
- Several US states are beginning to integrate Bitcoin into their financial frameworks
- Major acquisitions by firms like Coinbase, Kraken, and Gemini, along with Robinhood and Ripple’s expansion efforts, signal growing institutional confidence in the crypto space
- Despite being labeled “digital gold,” Bitcoin’s correlation with equities positions it as a risk-on asset
- Decreasing gold demand, expanding institutional crypto engagement, and clearer regulatory paths are aligning to support Bitcoin’s continued growth and dominance in 2025
J.P. Morgan has predicted a significant outperformance of Bitcoin (BTC) against gold for the remainder of 2025. The financial giant suggests a considerable shift in investor sentiment, favoring the leading cryptocurrency over traditional safe-haven assets.
Bitcoin Surges as Gold Loses Shine
The report highlights a recent divergence in the performance of the two. While gold saw gains at Bitcoin’s expense between mid-February and mid-April, the trend has sharply reversed in the past weeks. Since April 22, Bitcoin has rallied by approximately 18%, contrasting with gold’s nearly 8% price decline during the same period.
“The year-to-date zero-sum game between gold and Bitcoin is likely to persist,” stated managing director Nikolaos Panigirtzoglou. “However, we foresee greater upside for Bitcoin in the second half of the year, propelled by specific catalysts within the cryptocurrency ecosystem,” he added.
Institutional and Governmental Embrace Fuels Bitcoin’s Rise
J.P. Morgan underscores the growing acceptance of Bitcoin by both corporations and governments as a crucial factor driving its anticipated success. Major corporations are increasingly allocating capital to Bitcoin as part of their treasury strategies. Strategy (formerly MicroStrategy) has reportedly achieved 60% of its ambitious $42 billion Bitcoin accumulation target, aiming for completion by 2027. Japanese firm Metaplanet is also actively expanding its Bitcoin holdings.
On the governmental front, several U.S. states are beginning to integrate Bitcoin into their financial frameworks. New Hampshire recently enacted legislation permitting up to 5% of state reserves to be held in Bitcoin and gold. Arizona is also establishing a digital asset reserve.
Maturing Crypto Derivatives Market Signals Institutional Confidence
Further bolstering the bullish outlook for Bitcoin is the increasing maturity of the crypto derivatives market, evidenced by a series of significant acquisitions. Coinbase is set to acquire Deribit for $2.9 billion, Kraken has purchased futures platform NinjaTrader for $1.5 billion, and Gemini has secured a license to offer derivatives across the European Union.
In Canada, Robinhood expanded its crypto footprint by acquiring WonderFi for $179 million, while Ripple made a strategic move to bridge traditional finance and crypto with its $1.25 billion acquisition of credit network Hidden Road.
Bitcoin: A Risk-On Asset with Growing Appeal
Despite some narratives positioning Bitcoin as “digital gold,” J.P. Morgan maintains its classification of the cryptocurrency as a risk-on asset. However, with gold’s momentum waning amidst rising equity markets, Bitcoin’s risk-on characteristics are proving increasingly attractive to investors seeking higher returns.
Crypto Catalysts Position Bitcoin for Dominance
The company concludes that a confluence of factors, including decreasing demand for gold, increasing institutional engagement with cryptocurrencies, and evolving regulatory clarity in the derivatives market, positions Bitcoin for continued growth and outperformance against gold throughout 2025. As traditional finance continues to integrate with the digital asset space, the bank anticipates Bitcoin will maintain its upward trajectory.
Read more: Bitcoin Price Forecast: BTC Outlook for 2025-2030
