Bitcoin and gold are moving in tandem as investors embrace both assets as hedges, with JPMorgan analysts predicting record highs and crypto treasuries reshaping market dynamics.
Crypto and Gold: A Strengthening Connection
The relationship between cryptocurrency and gold has long sparked debate, but new market trends suggest the two may be more connected than previously imagined. Both assets have surged in 2025, with investors increasingly turning to them as protection against economic uncertainty and monetary policy shifts.
The latest developments come against the backdrop of Eightco Holdings’ announcement that it will begin accumulating Worldcoin, a cryptocurrency backed by OpenAI founder Sam Altman. The move sent shockwaves through financial markets, lifting not just Eightco’s stock but also related crypto assets.
Worldcoin soared, BitMine Immersion Technologies gained ground, and Ethereum also benefited. The episode illustrated how corporate activity in digital assets can ignite broad-based rallies across the sector.
Corporate Treasuries Fueling Demand
The rise of corporate crypto treasuries has become a significant market force. More than 200 companies now hold digital currencies, with firms such as Strategy, formerly MicroStrategy, and Mara Holdings leading the way.
BitMine, backed by venture capitalist Peter Thiel and chaired by crypto analyst Tom Lee, has grown into the third-largest publicly traded holder of Ethereum. This hoarding of digital assets has created a dynamic reminiscent of quantitative easing, reducing Bitcoin’s volatility by half this year and encouraging institutional interest.
According to JPMorgan strategists, corporate treasuries now control over 6% of total Bitcoin supply, enough to materially affect its pricing and stability.
Gold Shines as Yields Drop
Despite Bitcoin’s growth, gold has outpaced it in 2025. Prices for the yellow metal have risen 39% so far this year, compared with Bitcoin’s 22% and the S&P 500’s 12%.
JPMorgan analysts, the world’s largest bullion dealers, remain bullish. They forecast gold will reach $4,020 by next summer, up from $3,640 recently. The bank attributes the rally to falling real interest rates, with one-year Treasury yields plunging from over 5% last year to 3.6% now.
As inflation remains stubbornly high at 2.9%, investors suspect the Federal Reserve may allow prices to “run hot” to protect jobs. This has weakened the dollar while strengthening gold’s appeal as a hedge.
Bitcoin’s Valuation Relative to Gold
JPMorgan argues that Bitcoin’s current market value of $2.2 trillion is undervalued compared with gold’s $5 trillion in private-sector holdings across exchange-traded funds, bars, and coins. Analysts suggest Bitcoin deserves at least a 13% uplift to reflect its reduced volatility and growing adoption.
The ratio of Bitcoin’s rolling six-month volatility to that of gold has fallen to 2.0, its lowest level on record. This alignment further strengthens the case for Bitcoin as a stabilising asset in investor portfolios.
A Self-Reinforcing Market Cycle
The interplay between gold and Bitcoin is increasingly circular. As companies expand their crypto reserves and more firms like Strategy gain entry into major indexes such as the Russell 1000, passive investment flows are expected to accelerate. This could provide additional capital for further digital asset accumulation.
With gold and Bitcoin feeding into each other’s momentum, markets may be witnessing the beginning of a new era where traditional and digital safe havens move in unison. For investors, the convergence underscores a shifting landscape in which the old and the new no longer compete but coexist.
