Bitcoin will overtake gold — a new investor flow has begun

In recent years, Bitcoin and gold have competed as safe havens, protecting investors from the depreciation of fiat currencies. Both assets showed growth at the end of 2024, but the situation changed in 2025. Analysts at JPMorgan, a leading financial institution, predict bitcoin will surpass gold in growth by the end of the year.

This trend, which experts call a "zero-sum game", is already evident: when one asset grows, the other loses ground, according to The Block.

"While of the past three weeks we have been observing the opposite, i.e. bitcoin rising at the expense of gold," said Nikolaos Panigirtzoglou, JPMorgan's managing director.

Changing trends: Bitcoin is gaining momentum

From mid-February to mid-April 2025, gold showed growth while Bitcoin lost ground. However, over the past three weeks, the situation has changed dramatically. The price of gold has fallen 8% since its April 22 peak, while bitcoin has grown 18% over the same period.

This dynamic is also reflected in capital flows. Gold-focused exchange-traded funds are experiencing investment outflows, while spot bitcoin ETFs and crypto funds are attracting significant investments. Data from futures contracts confirms this trend: the volume of gold positions has decreased while the volume of bitcoin futures positions has increased.

"Bitcoin's recent outperformance isn't only due to gold weakening — it's also being driven by crypto-specific catalysts," JPMorgan analyst say.

Corporate Investments: companies bet on Bitcoin

One of the key drivers of Bitcoin's growth is the active accumulation of the cryptocurrency by large companies. For instance, Strategy (known before as MicroStrategy) is carrying out an ambitious 21/21 plan to raise $42 billion by 2027 for the purchase of Bitcoin. The company has already fulfilled 60% of its goal, indicating serious confidence in the cryptocurrency.

Metaplanet is another company actively increasing its bitcoin reserves, demonstrating a growing trend among corporations that view bitcoin as a strategic asset.

JPMorgan analysts comment: "Corporate accumulation of bitcoins creates a steady demand that supports the price of the asset, even during periods of market volatility".

Bitcoin in state reserves: a new trend

In addition to the corporate sector, bitcoin is appearing more frequently in state reserves. For instance, New Hampshire, a state in the United States, has authorized investing up to 5% of its assets in bitcoin and gold. Arizona has gone even further by creating a digital asset reserve funded by staking and airdrops, all without raising taxes.

"As the list grows, with other U.S. states potentially considering adding bitcoin to their strategic reserves, this could turn out to be a more sustained positive catalyst for bitcoin," the analysts stress.

This demonstrates growing confidence in cryptocurrencies at the state level, which could significantly affect their market capitalization in the long run.

The development of crypto derivatives indicates growing institutional trust

The cryptocurrency derivatives market is booming, too. Leading exchanges, including Coinbase, Kraken, and Gemini, are expanding their capabilities in this area. For example, Coinbase acquired the Deribit platform, Kraken bought NinjaTrader, and Gemini received a license to provide derivatives services in Europe.

These developments help attract institutional investors because clear regulation increases confidence in the crypto market. Analysts note that the development of derivatives could provide additional impetus for bitcoin growth, as institutional investors will have more tools with which to work.

Bitcoin has the potential to be the top asset of the year

If current trends continue and institutional support increases, Bitcoin could end 2025 at new all-time highs. Gold, on the other hand, is likely to remain in the shadows as a classic but less attractive safe-haven asset.

"The market situation is changing rapidly, but at the moment, bitcoin looks better prepared to end 2025 than gold," JPMorgan writes.

Previously, on Monday, May 19, 2025, Bitcoin experienced a significant breakthrough, reaching a price of $106,000 to $107,000 per coin. Although it failed to reach an all-time high, the price of bitcoin surpassed the cost of a kilogram of gold for the first time this year, which is approximately $103,500. 

As a reminder, we wrote that according to Bloomberg, investments in CS2 skins have yielded 41% per annum — more than traditional assets such as gold (with a much lower Sharpe ratio of 0.12) or even Bitcoin (0.21).