Bitcoin has held steady while gold and silver prices declined sharply due to ETF outflows, weakening liquidity and investor profit-taking, according to JPMorgan.
The bank said institutional unwinding and deteriorating market depth have weighed heavily on precious metals, while bitcoin has maintained inflows and stabilising momentum during geopolitical stress.
“The deterioration in liquidity conditions in gold has seen its market breadth decline below that of bitcoin currently,”
Said JPMorgan analyst, Nikolaos Panigirtzoglou.
Bitcoin has rebounded into the high-$60,000 range after briefly falling during the Iran conflict-driven sell-off, suggesting it behaves as a high-beta macro asset that stabilises as investor flows return.
Gold has dropped about 15% month-to-date from record highs, while silver has also declined sharply, driven by rising interest rates, a stronger US dollar and broad profit-taking.
Flows data showed nearly $11 billion exited gold ETFs in early March as silver positions were also unwound, whereas bitcoin funds continued to attract net inflows over the same period.
JPMorgan added that positioning and momentum indicators show investors cutting exposure to metals while bitcoin recovers from oversold conditions, signalling easing selling pressure and improving relative strength.
At the time of reporting, Bitcoin price was $68,881.53.