Bitcoin Is on Track to Overtake Gold as a Preferred Investment Choice in the Next Two Years

Corporate investments are playing a major role in propelling Bitcoin's gain in value. These companies are actively ramping up their level of investment in Bitcoin.

JPMorgan predicts that Bitcoin (BTC) could outpace gold as a preferred investment option within the next two years. This forecast follows a shift in the market toward digital assets, upending the role of traditional safe-haven investments.

Corporate Investments Fuel Bitcoin’s Rise

The bank attributes Bitcoin’s rapid gains to increased corporate investments and favorable regulations introduced by respective U.S. states.

“The maturation of the cryptocurrency derivatives market is now bringing in institutional investors, who are being drawn by improved institutional trading tools and platforms, which are leading to higher volumes and lower volatility in the Bitcoin market. These changes are instrumental in shaping Bitcoin as a potentially strong competitor in the conventional asset class,” JPMorgan analysts mentioned in a recent note.

These investments demonstrate greater faith in Bitcoin’s future potential as investors seek it out as a defense against potential turbulence in the traditional financial system.

“We believe that investors are increasingly viewing Bitcoin favorably for its role in their asset mix, as more institutions show a strong interest in the asset. This view is supported by the actions of companies like MicroStrategy and Metaplanet, which have been actively increasing their cryptocurrency holdings.”

Indeed, MicroStrategy hopes to acquire $84 billion worth of Bitcoin by December 2025 and is already 32% of the way there. Meanwhile, Metaplanet broke all-time records, adding 6,796 BTC to its Bitcoin holdings.

Gold Faces Declining Momentum

Conversely, gold is losing momentum compared to the gains made by Bitcoin. Since April 22, the price of gold dropped by almost 8%, while Bitcoin made a significant 18% gain during the same time. A change in investor preferences has led to money leaving gold ETFs and being invested instead in Bitcoin-oriented funds.

“The thinking here is that investors are pivoting out of gold and express their interest in Bitcoin in the futures market, which has seen a decline in demand for gold futures and an increase in demand for Bitcoin futures over the past few months.”

Evidence from the futures market backs up these developments. In the first few months of 2025, gold drew much more attention for safe investment compared to Bitcoin that experienced $600 million of ETF outflows in the same quarter. Meanwhile, Bitcoin faced outflows from ETFs and waning involvement in the futures market during the same period.

JPMorgan highlighted how gold’s reputation as a safe-haven investment is being eroded as investors turn to digital assets as options. The experts concluded that Bitcoin is benefiting from an increase in investors looking to hedge against currency depreciation by adding it to their portfolios.

“We suspect that, in the current low-return, high-inflation environment, investors are increasingly turning to Bitcoin as an asset class that offers the potential for both capital appreciation and a hedge against currency depreciation, leading them to add it to their portfolios in greater numbers.”