JPMorgan Raises Alarm on Bitcoin’s ‘Digital Gold’ Status Amid Price Decline
JPMorgan warns Bitcoin’s image as ‘digital gold’ is diminishing due to its correlation with U.S. equities, coinciding with a recent price drop of nearly 6%. Canadian billionaire Frank Giustra advises against the ‘digital gold’ narrative, while Bitcoin’s performance lags behind gold amidst global trade tensions. Reports indicate an intraday low for Bitcoin at $81,332, and analysts highlight its role as a risk asset.
In a recent analysis, JPMorgan has raised concerns regarding Bitcoin’s viability as a “digital gold,” attributing this to the cryptocurrency’s significant correlation with U.S. equities. This warning accompanies a notable decline in Bitcoin’s price, which has fallen nearly 6% as a result of ongoing tariff issues affecting global markets.
Additionally, Canadian billionaire Frank Giustra has publicly advised Bitcoin proponents to abandon the “digital gold” narrative, asserting that Bitcoin functions more like a conventional risk asset. Notably, Bitcoin’s performance has been disappointing in the first quarter of 2025, especially when compared to gold,
with risk assets generally suffering under current global trade tensions.
CoinGecko reported a recent decline in Bitcoin’s price, hitting an intraday low of $81,332, amidst a broader market downturn that saw the Nasdaq 100 index plunge more than 5%. Nikolaos Panigirtzoglou, a managing director at JPMorgan, indicated that gold is currently benefitting from the debasement trade, contrasting its performance with that of Bitcoin. Furthermore, Mike McGlone, chief commodities analyst at Bloomberg, remarked that Bitcoin demonstrates characteristics of being more “leveraged beta” rather than fulfilling its image as digital gold.
In summary, JPMorgan’s recent report highlights concerns about Bitcoin’s status as digital gold, particularly as its price correlation with U.S. equities grows. Key market figures are urging a reevaluation of Bitcoin’s narrative, pointing out its underperformance compared to gold during turbulent economic conditions. The emerging consensus emphasizes that Bitcoin is behaving more like a risk asset rather than a stable store of value.
Original Source: u.today
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