JPMorgan (JPM.US): Bitcoin support could surpass gold if hedging is unwound

JPMorgan said Bitcoin support could surpass gold if hedging is unwound, according to a report originally carried by Moomoo. The statement frames Bitcoin and gold as assets that can draw demand from investors seeking protection against market, currency or geopolitical uncertainty.

Gold has long been viewed as a traditional hedge because of its history as a store of value and its role in global financial markets. Bitcoin, the largest cryptocurrency by market recognition, is a newer and more volatile asset whose use as a hedge remains debated among investors and policymakers.

The JPMorgan view points to the potential importance of changes in hedging activity. If investors reduce or unwind hedges, relative demand for different protective assets can shift, affecting the support available to Bitcoin and gold.

The comparison also highlights the growing attention paid to Bitcoin within mainstream finance. However, the report’s assessment is conditional on hedging being unwound, rather than presenting a certain outcome for either asset.