JPMorgan: Bitcoin Outperforms Gold and Silver, Showing Resilience in Fund Flows and Momentum

Odaily News JPMorgan stated that amid ETF outflows, deteriorating liquidity, and institutional deleveraging, gold and silver are under pressure, while Bitcoin has demonstrated greater resilience and relatively stable fund inflows. Gold ETFs recorded nearly $11 billion in net outflows in the first three weeks of March, and silver-related funds also saw significant withdrawals. Coupled with rising interest rates and a strengthening US dollar, these factors have driven down precious metal prices. Meanwhile, Bitcoin funds have maintained net inflows, with market momentum gradually improving.

In terms of price performance, Bitcoin initially fell to around $60,000 alongside risk assets during the early stages of geopolitical conflict but quickly stabilized. It is currently trading within a range of $68,000 to $70,000, indicating that long-term capital has re-entered the market to support prices after the initial panic.

Furthermore, positioning and momentum data have also diverged. Institutional holdings in gold and silver futures have declined significantly since the beginning of the year, while Bitcoin futures positions have remained largely stable. Trend-following funds have shifted from being "overbought" in precious metals to below neutral levels, exacerbating their downward pressure. Bitcoin, on the other hand, has rebounded from oversold territory, with selling pressure easing. Liquidity indicators show that gold market breadth has fallen below that of Bitcoin, while silver liquidity has further weakened. JPMorgan believes this change highlights that Bitcoin is gradually exhibiting performance characteristics distinct from traditional safe-haven assets in the current macro and geopolitical environment. (CoinDesk)