Bitcoin Could to Outperform Gold, According to JPMorgan

The once-aligned “debasement trade” — where investors hedge weakening fiat currencies by buying both gold and Bitcoin — has fractured in 2025

A new report from JPMorgan has revealed that the once-aligned "debasement trade" — where investors bought both gold and Bitcoin to hedge against weakening fiat currencies — has fractured in 2025.

According to the bank's analysts, the two assets are now largely engaged in a zero-sum game, with capital flowing from one to the other rather than rising in tandem.

“Between mid-February and mid-April, gold was rising at the expense of BTC. Over the past three weeks, we’ve seen the opposite — Bitcoin gaining at the expense of gold,” wrote Nikolaos Panigirtzoglou, managing director at JPMorgan, in a note shared with The Block.

Since peaking on April 22, gold has fallen nearly 8%, while BTC has surged 18% over the same period. This divergence is also reflected in investor behavior:

As both assets continue to serve as inflation and fiat-debasement hedges, JPMorgan’s outlook suggests BTC may take the lead — especially if crypto-specific momentum continues to build.