Bitcoin Surges 18% As Corporate Demand And State Support Grow

JPMorgan analysts have released a report indicating that Bitcoin (BTC) is expected to gain more traction than gold in the latter half of 2025. This shift is driven by increasing corporate demand for Bitcoin and growing support from various US states, signaling a significant change in investment behaviors.

The report, led by managing director Nikolaos Panigirtzoglou, highlights a phenomenon termed the “debasement trade,” where investors seek refuge in gold and Bitcoin to protect against the devaluation of fiat currencies. This dynamic has evolved into a competitive scenario, with Bitcoin currently emerging as the favored asset.

Between mid-February and mid-April, gold saw gains at Bitcoin’s expense. However, in recent weeks, this trend has reversed, with Bitcoin surging while gold prices have declined. Since April 22, gold has dropped nearly 8%, while BTC has experienced an impressive 18% increase. This shift is reflected in investor behavior, with significant capital moving out of gold exchange-traded funds (ETFs) and into Bitcoin.

JPMorgan attributes the cryptocurrency’s recent momentum not only to the weakening of gold but also to specific catalysts within the cryptocurrency space. Notable companies like Strategy (previously Microstrategy) and Metaplanet are ramping up their BTC acquisitions. Strategy, in particular, is on track to raise $84 billion for Bitcoin purchases by 2027, having already achieved 32% of that goal.

Metaplanet reported a record performance in the first quarter of FY2025, with its Bitcoin holdings surging to 6,796 BTC—a remarkable increase of 3.9 times year-to-date, adding over 5,000 BTC in 2025 alone. Despite facing a valuation dip of ¥7.4 billion due to a price drop in March, Metaplanet has rebounded significantly, reporting ¥13.5 billion in unrealized gains as of May 12.

Since adopting the BTC Treasury Standard, the company’s net asset value in Bitcoin has skyrocketed, increasing by a staggering 103.1 times, while its market capitalization has grown 138.1 times. In addition to corporate interest, several US states are beginning to embrace BTC. New Hampshire has authorized the use of up to 5% of its reserves in Bitcoin, and Arizona is set to establish a Bitcoin reserve, pledging not to raise taxes this year.

The analysts suggest that as more states consider incorporating Bitcoin into their strategic reserves, this trend could serve as a sustained positive catalyst for Bitcoin’s growth. As of this writing, BTC trades at $104,000, recording a major 23% price recovery on the monthly time frame, resulting in year-to-date (YTD) gains of nearly 60% for the leading crypto.