Gold Sees $21.1 Billion Inflows, Bitcoin Struggles Amid Economic Uncertainty

JPMorgan analysts have recently highlighted a notable trend in the market, where gold continues to attract significant capital inflows as a safe-haven asset, while Bitcoin struggles to maintain its status as "digital gold." This trend is particularly evident amidst global economic uncertainty, where investors are increasingly turning to gold for stability. According to JPMorgan’s report, gold has seen substantial inflows through ETFs and futures, whereas Bitcoin has not been able to tap into these safe-haven flows to the same extent.

In the first quarter of 2025, gold ETFs experienced a massive inflow of $21.1 billion, underscoring the growing demand for this traditional safe-haven asset. This surge in demand for gold is driven by a combination of factors, including speculative interest and the need for a reliable store of value during times of economic turmoil. In contrast, Bitcoin has not seen the same level of investor interest, suggesting a shift in investor preferences towards more traditional assets during uncertain times.

JPMorgan’s analysis indicates that Bitcoin’s "digital gold" label is under significant strain. The price of Bitcoin has remained relatively stable around $84,300, but it has not generated the same safe-haven flows as gold. The Bitcoin ETF and futures markets have not matched the investor interest shown in gold, further highlighting the disparity between the two assets. Analysts note that the $62,000 level is crucial for Bitcoin, as it is estimated to be the cost of production. The failure of Bitcoin to attract safe-haven flows threatens its identity as "digital gold," especially given gold’s strong performance.

The price action of Bitcoin has been volatile, with the trading session starting between $83,100 and $84,000. The price formed a tight range before breaking out around 13:00 UTC, pushing towards $85,500. This move was supported by an overbought RSI and a golden cross on the MACD, indicating short-term strength. However, the price was quickly rejected near resistance, leading to a $2,500 drop to $83,200, where support held. The RSI dipped into oversold territory, and the MACD death cross confirmed the bearish retracement. After finding a bottom, the price established an ascending channel, bouncing from $83,200 and rising back above $84,400. The recovery showed multiple golden crosses, but a brief return to overbought conditions suggests exhaustion. The MACD remains slightly bullish, though momentum seems to be fading as the gap between its lines narrows.

As investor preferences shift during uncertain economic times, gold continues to outperform Bitcoin. The resurgence in gold demand from both institutional and retail investors highlights the enduring appeal of classic assets. For Bitcoin to reclaim its safe-haven title, it must demonstrate its ability to attract capital inflows similar to gold. Currently, Bitcoin risks becoming a second-tier asset in a market increasingly favoring more established safe-haven assets like gold.