JPMorgan: Bitcoin's "Digital Gold" Narrative Faces Pressure

The JPMorgan analyst stated that Bitcoin's position as "digital gold" is under pressure, while the demand for gold remains strong. "Bitcoin's volatility and its correlation with stocks have raised doubts about its 'digital gold' claim." "Looking ahead, we believe that gold will continue to rise, becoming the main beneficiary of depreciation trades." Depreciation trading is a strategy focused on buying assets such as gold and Bitcoin to hedge against inflation, long-term debt, and currency devaluation. The analyst said that this year the price of gold has risen sharply to more than $3,100 per ounce, reflecting an “intensification” of depreciation trading - which means investors are increasingly favoring gold over Bitcoin.