Bitcoin May Outshine Gold as JPMorgan and Bloomberg Predict Strong Gains

JPMorgan analysts have made some interesting observations about Bitcoin and gold. According to their report, Bitcoin could outperform gold if ETF hedging eases.

The reason for this is that gold ETFs have fully recovered all their 2026 outflows, while Bitcoin ETFs have only recovered half of theirs.

This debasement trade drove inflows into both assets after the July Fed meeting. However, it has weakened over the past week as inflation-adjusted bond yields rose and the CLARITY Act failed in the Senate.

Bloomberg's Eric Balchunas predicts that Bitcoin ETFs will eventually triple gold ETFs in total assets. He believes this will be driven by generational wealth transfer and growing institutional comfort with Bitcoin, as its volatility falls.