Bitcoin is showing strong momentum alongside gold, according to new projections from JPMorgan. The Wall Street giant sees major upside ahead for the apex cryptocurrency. Based on volatility-adjusted models, the firm estimates the largest cryptocurrency by market cap could surge 40% from its current price of $119,000.
That would place Bitcoin at approximately $165,000, a level that aligns it with private gold holdings on a risk-adjusted scale. JPMorgan attributes this potential rise to a growing preference for assets that shield against the weakening of fiat currencies.
Investors, particularly retail ones, are increasingly opting for both gold and BTC. The bank labels this shift the “debasement trade,” a move toward hard assets as traditional currencies lose purchasing power.
Bitcoin Gains as Investors Shift From Fiat to Digital Assets
Investors have significantly increased their exposure to Bitcoin through spot ETFs. This influx began accelerating early in the year and has continued through recent months. JPMorgan’s data shows that Bitcoin ETF inflows initially surged ahead of gold, but have since moved more in sync.
While gold ETF inflows are catching up, demand for BTC remains elevated. Both assets have experienced significant increases in retail-driven investment activity over the past quarter.
Institutional interest hasn’t vanished, but its pace is slower. Big investors are opting for Bitcoin exposure through futures contracts on the Chicago Mercantile Exchange (CME) rather than ETFs. JPMorgan uses open interest figures as a proxy and confirms steady, though moderate, institutional buying.
Despite this, retail momentum remains dominant. As more everyday investors seek alternatives to cash and bonds, BTC and gold offer perceived safety and long-term value.
Crypto and Gold Shine as Market Confidence Shifts
Rising gold prices in recent weeks have added to Bitcoin’s appeal. According to JPMorgan, the Bitcoin-to-gold volatility ratio has now fallen below 2.0. This trend supports BTC’s evolution into a more stable, long-term asset.
The combined surge in gold and Bitcoin inflows highlights a clear market direction. Investors are diversifying to hedge against inflation, currency devaluation, and financial uncertainty. JPMorgan, managing over $4 trillion in assets, sees continued upside if these patterns persist. The bank maintains that BTC remains underpriced when weighed against gold’s current valuation.
Retail buyers continue to drive the market, while institutions support momentum from the sidelines. If this mix holds, BTC could gain further ground in the store-of-value debate.
Evans Kelvin
