Bitcoin Gains Edge Over Gold Amid Shift in Investor Sentiment

JPMorgan analysts say Bitcoin could gain more support than gold if investors reduce hedging around exchange-traded funds. The bank sees a wider gap between Bitcoin and gold positioning after recent market pressure.

Both assets attracted ETF inflows after the Federal Reserve meeting in late July, but demand has moved differently since then. JPMorgan said that gap could matter if investors unwind hedges, because closing defensive positions may add support without stronger ETF demand.

The bank also noted that futures positioning remains high in both assets. This suggests large investors still maintain exposure to Bitcoin and gold despite weaker demand in recent sessions.