- JP Morgan analysts predict Bitcoin will outperform gold for the rest of 2025, driven by a shift in investor preference and declining gold prices.
- State-level adoption, like in New Hampshire and Arizona, is also seen as a key factor boosting Bitcoin’s long-term appeal.
JP Morgan analysts have made a bold call for the rest of 2025: Bitcoin is expected to outperform gold. According to the bank, a growing trend of investment reallocation is favoring Bitcoin, marking a sharp reversal from earlier in the year.
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Bitcoin Gains Momentum While Gold Declines
For much of 2025, gold was in the lead. As part of what analysts call the “debasement trade” — where investors hedge against weakening currencies — both gold and Bitcoin had been seen as safe-haven assets. However, this strategy has morphed into a zero-sum game.
Since gold hit its peak in April, prices have steadily declined. BTC, on the other hand, has gained traction. This shift is being driven by a notable outflow of money from gold exchange-traded funds (ETFs) and into spot Bitcoin and other crypto-related funds.
State-Level Crypto Adoption Adds Fuel
JP Morgan analysts also pointed to key political developments as potential long-term catalysts for Bitcoin’s. In particular, they highlighted new legislation from New Hampshire, which now allows the state to invest up to 10% of its public funds in Bitcoin and precious metals. Arizona has passed a similar bill.
These moves by U.S. states signal growing institutional acceptance of Bitcoin. If more states follow suit, it could drive continued inflows and support upward price momentum. JP Morgan believes this trend could serve as a “sustained positive” for Bitcoin in the months ahead.
Market Outlook for Bitcoin vs Gold
The current shift in capital suggests that investors are increasingly betting on Bitcoin over gold. With crypto funds seeing higher inflows and traditional gold ETFs losing ground, the narrative around digital assets as a store of value is strengthening.
The BTC/XAU chart as of May 16, 2025, supports JP Morgan’s outlook, showing a clear turn in favor of Bitcoin. If these trends continue, Bitcoin may solidify its position as the leading hedge against economic instability.
In a year where macro uncertainty still looms, Bitcoin’s edge over gold appears to be gaining credibility — and momentum.
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