JPMorgan quant says Bitcoin now looks more attractive than gold long term

Published: Thursday, February 5, 2026 · 1:37 PM | Updated: Thursday, February 5, 2026 · 1:37 PM

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Investing.com — Bitcoin’s relative appeal versus gold has strengthened sharply following a period of pronounced divergence between the two assets, according to JPMorgan.
Nikolaos Panigirtzoglou, the bank’s quantitative strategist, said the “large outperformance of gold vs.
JPMorgan believes the latest pullback has pushed bitcoin further below its estimated production cost of $87,000, a level that has “historically served as a soft price.

Investing.com — Bitcoin’s relative appeal versus gold has strengthened sharply following a period of pronounced divergence between the two assets, according to JPMorgan.

Nikolaos Panigirtzoglou, the bank’s quantitative strategist, said the “large outperformance of gold vs. bitcoin since last October coupled with the sharp rise in gold volatility has left bitcoin looking even more attractive compared to gold over the long term.”

JPMorgan explained that crypto markets have faced multiple headwinds in recent weeks, including broader risk-asset weakness and a correction in gold and silver, which are typically seen as alternative hedges.

Sentiment was further hit after “Solana’s Step Finance suffered a $26mn hack.”

Despite the selloff, JPMorgan noted that position liquidations have been “more modest compared to those seen last quarter,” including deleveraging in perpetual futures and investor activity in CME bitcoin and ethereum contracts.

However, the bank said spot ETFs “continued to suffer outflows, suggesting that negative sentiment is widespread and encompasses both institutional and retail investors.”

Panigirtzoglou also highlighted continued contraction in stablecoins but argued this reflects “a natural and delayed reaction to the shrinkage of overall crypto market cap,” rather than large-scale investor exit.

JPMorgan believes the latest pullback has pushed bitcoin further below its estimated production cost of $87,000, a level that has “historically served as a soft price floor.”

But the bank’s central point is that bitcoin’s long-term risk-adjusted potential relative to gold has improved. The bitcoin-to-gold volatility ratio has fallen to 1.5, “a new record low,” and on a volatility-adjusted basis, bitcoin’s market cap would need to rise to $266,000 “to match private sector’s investment in gold.”

JPMorgan quant says Bitcoin now looks more attractive than gold long term

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