- The firm added that while crypto markets have faced pressure from broader risk-asset weakness and a pullback in precious metals, the impact appears contained.
- Deutsche Bank analysts said the broader crypto decline is largely driven by heavy withdrawals from institutional ETFs.
- Bitcoin slumped 8% to $67,149 while spot gold fell 2.4% to $4,847.71 an ounce at the time of writing.
JPMorgan reportedly stated on Thursday that Bitcoin’s long-term appeal relative to gold has strengthened, driven by gold’s recent rally and a sharp rise in its volatility.
The firm noted that Bitcoin’s risk-adjusted profile has improved, with its volatility relative to gold falling to a record low, according to a report by Investing.com.
JP Morgan’s Nikolaos Panigirtzoglou said the widening divergence between the two assets since last October has made Bitcoin increasingly attractive for long-term investors. While crypto markets have faced pressure from broader risk-asset weakness and a pullback in precious metals, the impact appears contained, the firm said.
Panigirtzoglou said that on a volatility-adjusted basis, Bitcoin’s market cap would need to reach about $266,000 to match private-sector investment in gold, estimated at roughly $8 trillion excluding central banks. However, he acknowledged that it was unrealistic in the near term.
Bitcoin Sees Extended Selloff
Bitcoin fell below the $70,000 mark and was trading about 8% lower at $67,149 at the time of writing. The cryptocurrency last traded below $70,000 in November 2024.
A selloff in cryptocurrencies has deepened over the last three weeks, wiping out nearly half of Bitcoin’s value since it surged to a record above $126,000 in early October and pressuring other tokens and related exchange-traded funds (ETFs).
Deutsche Bank analysts said the broader crypto decline is largely driven by heavy withdrawals from institutional ETFs, which have recorded billions in monthly outflows since the October 2025 downturn, according to a Reuters report on Thursday.
U.S. spot Bitcoin ETFs saw more than $3 billion exit in January, following around $2 billion in December and $7 billion in November, the report added.
Meanwhile, spot gold (XAU/USD) fell 2.4% to $4,847.71 an ounce, more than 13% below its record high of $5,598 an ounce last week.
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