JPMorgan says Bitcoin’s long-term investment case against gold has strengthened, pointing to a clear improvement in risk-adjusted performance. With gold prices staying firm while volatility in safe-haven assets has also increased, the bank is framing Bitcoin less as a pure speculative trade and more as an asset worth comparing with gold over a longer horizon.
Market weakness has not turned into panic selling
According to a JPMorgan report cited by Walter Bloomberg, Bitcoin has remained under pressure as the broader crypto market softened. Even so, the bank said there has been no large-scale panic liquidation. Deleveraging has been relatively orderly, a notable contrast with the forced unwinds often seen during sharper drawdowns. Short-term sentiment is still cautious, though, as spot Bitcoin ETFs continue to post outflows.
Trading below the estimated $87,000 production cost
JPMorgan also said Bitcoin is now trading well below its estimated production cost of about $87,000. Based on historical patterns, the bank views periods when Bitcoin falls beneath that production-cost range as forming a “soft floor” for the asset. That does not remove price swings, but it has often provided support for the medium- to long-term trend and reduced the odds of a much deeper decline.
Bitcoin-gold volatility ratio falls to a record low
The report’s main argument is that Bitcoin’s volatility relative to gold has dropped to a historical low. JPMorgan reads that as a sign that Bitcoin’s price behavior is becoming more mature. If demand recovers while volatility stays more contained, the bank believes Bitcoin still has meaningful upside over time. The shift in language is also notable: Bitcoin is being discussed not only as a high-beta asset, but as a potential long-term allocation choice alongside gold.