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Gold is once again the dominant safe-haven asset, a JPMorgan report says. With geopolitical tensions and an uncertain economy that President Trump’s combative trade policies have provoked, investors have rushed toward gold, not Bitcoin, seeking shelter in a reliable vehicle of value.
Gold exchange-traded funds (ETFs) and futures have seen solid inflows, and gold prices have now exceeded $3,660 this week, a record high, according to the report, which was released Thursday. Conversely, Bitcoin, which many have hailed as “digital gold,” has” not drawn comparable capital flows during this period of financial stress.
Gold ETFs Attract Investors While Bitcoin ETFs Report Outflows
Gold-backed ETFs have seen a surge of investment in 2025, with U.S.-listed gold ETFs racking up nearly $150 billion in assets under management, according to data from VettaFi and the World Gold Council. The recent uptrend in the gold price has enriched its position as a defensive hedge in bear markets.
In contrast, U.S.-approved spot Bitcoin ETFs—which launched in late 2024 — have struggled with diminished activity. Bitcoin funds have lost their edge after briefly overtaking gold ETFs in assets under management in December. This past mid-April, aggregated Bitcoin ETFs have dipped below $94 billion in holdings, experiencing more than $800 million in net outflows this month alone.
Trained over data until October 2023.
Bitcoin hit a record high close to $109,000 on Jan. 20, 2025 — the day of President Trump’s inauguration. But after it fell below $84,585 on April 18, as per CoinGecko data, it has lost more than 20% in value since the all-time high.
Despite being traditionally compared to an inflation hedge like gold, Bitcoin has actually demonstrated stronger correlations to riskier assets, like U.S. tech stocks. This correlation tarnishes the reputation of Bitcoin as a safe-haven asset with zero default risk.
“Bitcoin has failed to catch a bid from safe-haven flows that have provided support to gold in recent months,”
Analysts at JPMorgan wrote.
This Explains Why Investors Do What They Do
Several factors are going back to gold. Among these are the continuing global trade tensions, prompted by renewed tariffs from the Trump administration and increasing concerns of a global recession. As equity markets retreat — the S&P 500 and Nasdaq are both off about 6 percent for the month — investors return to historically stable alternatives.
Gold, which has little dependency on centralized institutions or market cycles like its equity and crypto counterparts, has once again been the chosen asset on a macroeconomic basis.
Bitcoin 2025 Predictions Are Mixed
Analysts are divided over where Bitcoin’s price will go next. In fact, Bitcoin could rise to $126,947 over the next 30 days, which would be an upside of over 50%. A mid-2025 top near $137,000 is touted in another projection from finance magnates that sees positive conditions, like less regulation and healthier ETF performance, as the key to the outcome.
But these estimates are institution-dependent on global sentiment, regulatory developments, and risk market sentiment, all of which remain delicate.
Gold vs Bitcoin Performance
| Asset | Current Price (April 18, 2025) | Year-to-Date Change | ETF Assets Under Management | Correlation with Equities | Safe-Haven Appeal |
| Gold | $3,660 | +26% | $150 billion | Low | High |
| Bitcoin (BTC) | $84,585 | -20% | $93 billion | High | Low |
Key Takeaways
Amid increasing geopolitical risks and slowing global growth, gold retains substantial interest among investors seeking refuge.
Despite growing popularity and institutional adoption via ETFs, Bitcoin has lost some luster as a defensive asset due to volatility and correlation with tech stocks.
JPMorgan’s assessment would raise caution on pitching Bitcoin as a hedge against uncertainty, particularly while traditional means like gold are performing better.
The future price paths of Bitcoin are uncertain, contingent on both wider market forces and the regulatory landscape in the United States and abroad.
Conclusion
JPMorgan’s analysis is a testament to the long-time allure of gold as a ride-or-die safe-haven asset in times of economic strain. Though Bitcoin reflects technological enchantment and is breaking records, it has not been tested for power during crises. As gold ETFs surge and Bitcoin ETFs take net outflows, it seems that old-school investing wins today, at least.
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FAQS
1. Bitcoin to Gold: Why are investors switching gears in 2025?
Gold is now more attractive to investors due to geopolitical instability, economic uncertainty, and Bitcoin’s growing correlation with technology stocks, resulting in gold becoming a safer positive asset with solid returns.
2. Performance of Bitcoin and gold ETFs in 2022
Gold ETFs enjoyed robust inflows and record prices, while Bitcoin ETFs are experiencing outflows of over $800 million, with both spikes in volatility and waning investor sentiment.
3. Is it still true that Bitcoin is a safe-haven asset, such as gold?
No. As many have noted in the past, Bitcoin now seems to act more like a risk asset, tracking equity markets rather than offering safe-haven performance like gold during times of crisis.
4. How risky is it to hold Bitcoin through volatile markets?
The high volatility of Bitcoin, regulatory uncertainty, and reduced safe-haven appeal boost the vulnerability to market losses in downturns or geopolitical disruptions.
Glossary of Key Terms
1. Safe-Haven Asset
An investment that is expected to hold onto or grow in value during turbulent markets. Gold is typically considered a safe haven, while Bitcoin is still on the debate table in 2025.
2. Exchange-Traded Fund (ETF)
Exchange-traded funds that hold stocks, commodities, or cryptocurrencies. ETF gold and Bitcoin offer indirect exposure without requiring ownership of the underlying asset.
3. Assets Under Management (AUM)
Total market value of the financial assets that an informed institution or fund manages on behalf of other people. Signs of higher investor confidence in gold ETFs can be seen with the rise in AUM.
4. Year-to-Date (YTD) Returns
Year-to-Date Return: It is used to evaluate performance trends over a period of time.
5. Market Volatility
What is It is the measure of asset price change. Whenever Bitcoin sees wild volatility, investors usually tend to go back to some stable instruments such as gold.
6. Correlation with Equities
A gauge of how closely an asset’s price moves in relation to stock markets. Bitcoin has also become more correlated with tech stocks, limiting its ability to diversify.
7. Geopolitical Risk
Political events, trade policy, or conflicts around the world and how it could impact investment markets. Rising geopolitical tensions tend to increase demand for safe-haven assets such as gold.
8. Digital Gold
A Bitcoin nickname based on its value store qualities. Though thinking of Bitcoin as similar to gold, Bitcoin’s volatility and fair regulatory exposure diminish its safe-haven use.
