Even though bitcoin's price has fallen 56 percent versus gold recently, global investment bank JPMorgan assessed that its long-term investment appeal has increased.

According to blockchain outlet The Crypto Basic on Feb. 5 (local time), bitcoin fell 40 percent from $115,000 in August 2025 to $69,900 now, while gold rose 46 percent over the same period. As a result, gold's value relative to bitcoin declined from 32 ounces to 14 ounces, but JPMorgan analysed that the gap has instead boosted bitcoin's long-term investment appeal. In October last year, JPMorgan had already said bitcoin was undervalued compared with gold.

JPMorgan strategist Nikolaos Panigirtzoglou (니콜라오스 파니기르초글루) said in a recent note that bitcoin's risk-adjusted attractiveness has strengthened due to gold's sharp rise and increased volatility. JPMorgan analysed that the gold-to-bitcoin volatility ratio fell to a record low of 1.5, and that bitcoin's market value would have to rise to $266,000 to be in balance with current levels of gold holdings.

The crypto market is now under downward pressure due to weakness in risk assets and a correction in gold and silver. JPMorgan, however, assessed that liquidation activity in the crypto market is more limited than in the previous quarter and that the CME bitcoin and ether futures markets are also showing stable moves. By contrast, spot bitcoin exchange-traded funds recorded outflows of $6.435 billion since November 2025, indicating weakening investor sentiment.

Bitcoin has recently given back the entire 78 percent rally it had notched after President Trump's election victory. Crypto-related stocks such as Coinbase, Riot and Marathon also plunged 5 to 7 percent along with bitcoin's decline. Economic uncertainty is also increasing. The U.S. January layoff rate rose 205 percent from a year earlier to the highest since 2009, and Amazon announced job cuts of 16,000.

The stock market is also mixed. BMO Capital Markets expects the S&P 500 to reach 7,380 points by the end of 2026 and presented a strategy that favours cyclical stocks. But inflation risks and economic uncertainty are still acting as burdens.