JPMorgan analysts noted that Bitcoin’s long-term investment appeal has strengthened compared to gold. This assessment attracted attention with the positive assessments of experts about the long-term outlook, although Bitcoin has experienced a significant loss in value in recent months. JPMorgan is known as a major financial institution headquartered in New York and operating worldwide; The bank frequently shares its analysis and predictions about the markets.
Volatility Balance and Market Assessment
In JPMorgan’s latest report, it was stated that although gold has gained strong value in the last year, its increasing volatility has reduced the risk difference between it and Bitcoin. Analysts stated, “The recent rapid rise of gold has also led to a significant increase in its volatility.” It was stated that there was an improvement in the risk-adjusted profile of Bitcoin compared to gold, and price fluctuations were also closer between the two assets.
The report points out that gold has gained approximately 30 percent in value since October 2025, while Bitcoin has fallen to almost half of its peak of 126 thousand dollars. On the other hand, JPMorgan strategist Nikolaos Panigirtzoglou points out that the rise in gold also causes an increase in volatility.
“The ratio between Bitcoin’s volatility and gold has fallen to a record low, and the gap in terms of risk perception has narrowed,” Panigirtzoglou said.
Experts pointed out that in order for Bitcoin’s market value to reach a level comparable only to gold, it should theoretically reach a price of approximately 266 thousand dollars. However, it was also underlined that it is difficult to reach these levels in the short term.
Sharp Fall in Bitcoin Price and Market Reaction
The analysis was published after the recent sharp decline in the price of Bitcoin. Cryptocurrency dropped to around 65 thousand dollars with volatile transactions last Thursday, and this figure was considered the largest loss of nominal value ever seen.
It is stated that Bitcoin has decreased by approximately 62 thousand dollars since its peak in October. According to JPMorgan’s assessment, Bitcoin’s current price is well below its production cost, which is estimated at approximately $87,000.
JPMorgan stated, “A prolonged period of prices below the cost of production may cause inefficient miners to withdraw from the market.”
During this period, there was a constant outflow of money from US-based Bitcoin exchange traded funds (ETFs). The bank noted that there was an outflow of more than 3 billion dollars last month, and that high amount movements were also seen in December and November.
Latest Developments in Market Dynamics
JPMorgan claimed that despite the recent sales wave, a more moderate sales pressure was observed compared to the past. However, the ongoing outflows in ETFs and the sharp decline in prices show that the negative atmosphere in the market continues. At the time the news was prepared, the price of Bitcoin was at the level of 66 thousand dollars.
