Bitcoin (BTC) price appears to be pausing its rise as investors reassess its position as a safe haven asset

The rise of bitcoin appears to be pausing. In light of gold's increasing strength, more and more analysts are questioning the position of BTC as a safe haven asset.

In the constantly shifting landscape of financial markets, new trends are emerging. As bitcoin’s rise appears to be pausing, analysts are increasingly questioning the cryptocurrency’s position as a safe haven asset in light of gold’s increasing strength.

The data provided by JPMorgan analysts sheds light on this interesting development.

Bitcoin Is Losing Ground To Gold In Financial Markets

The narrative of BTC as digital gold is encountering some difficulties today. According to JPMorgan, investors appear to be readjusting their strategies for protection against inflation and economic instability. As a result, we are seeing a shift in investment flows.

Indeed, we are seeing a reversal of capital flows. More precisely, we are seeing large-scale exits from Bitcoin ETFs and a corresponding shift to those backed by gold.

The precious metal has just crossed the $3,100 per ounce mark. It even attracts more than $9 trillion in allocation. In contrast, digital assets are still encumbered by their volatility. In this regard, JPMorgan analysts noted:

“The correlation of bitcoin with tech stocks calls into question its role as a safe haven asset.”

To make matters worse, central banks are also contributing to this golden momentum. The report indicates that these institutions hold $4 trillion in gold, compared to only $5 trillion held by private investors.

On the other hand, bitcoin has been underperforming since the beginning of 2025. Its performance has been underwhelming, to say the least.

Could The Production Cost Of BTC Become Its Floor?

Certainly, confidence seems to be waning. However, bitcoin still boasts a major asset: its production cost. Cryptocurrency experts currently estimate it at $62,000. According to JPMorgan analysts, this level acts as an empirical support.

Nevertheless, this value remains fragile. Since January, Bitcoin ETFs have recorded substantial net outflows. Concurrently, positions on futures contracts have slid into negative territory. This indicates a gradual disengagement by crypto investors.

Therefore, the challenge for bitcoin is twofold: