JPMorgan: Gold liquidity has fallen below Bitcoin, with BTC stabilizing against the geopolitical crisis.

Wall Street investment bank JPMorgan’s latest report indicates that as traditional safe-haven assets like gold and silver face capital outflows, position unwinding, and deteriorating liquidity, Bitcoin has demonstrated even greater resilience. Analysts state that the worsening liquidity conditions in gold have caused its market breadth to fall below Bitcoin’s current level.
(Background: After a 40% correction, institutional investors are still buying! Bitcoin ETFs attracted $2.5 billion this month, showing resilience far beyond the “gold crash” of the past.)
(Additional context: What is the narrative behind Bitcoin surging to $76,000, surpassing gold and oil amid US-Iran tensions?)

Table of Contents

Toggle

• Bitcoin shows high beta macro asset characteristics
• Gold and silver face sell-offs, losing $11 billion in a month
• Divergence between liquidity and momentum, BTC selling pressure eases

The halo of traditional safe-haven assets seems to be fading, while the market structure of cryptocurrencies is becoming increasingly robust. According to a recent report from Wall Street investment bank JPMorgan, as gold and silver come under pressure due to capital outflows and liquidity issues, Bitcoin (BTC) has shown greater resilience than traditional safe-haven assets.

Led by analyst Nikolaos Panigirtzoglou, the team clearly states in their Wednesday report:

“The deterioration in gold’s liquidity conditions has caused its market breadth to fall below that of Bitcoin.”

Bitcoin Demonstrates High Beta Macro Asset Characteristics

Amid geopolitical uncertainties such as the outbreak of conflict in the Middle East (Iran) and oil prices soaring past $100 per barrel, Bitcoin has performed relatively steadily over the past few weeks. Although initially, Bitcoin experienced a sharp decline along with other risk assets, briefly dropping to the $60,000 range, and saw massive liquidations as investors rushed to de-risk.

However, this sell-off was quite short-lived. Bitcoin quickly stabilized between the high $60,000s and low $70,000s, even as geopolitical tensions persisted. Analysts note that this price behavior indicates that during the initial shock of the crisis, Bitcoin did not behave purely as a “safe-haven” asset but more like a high beta macro asset — initially sold off, but with the easing of panic, long-term holders entering, and capital flowing back in, it found strong support rapidly.

Gold and Silver Face Sell-offs, Losing $11 Billion in a Month

In contrast, the precious metals market has faced heavy selling pressure recently. Gold has fallen about 15% this month, reversing the surge to nearly $5,500 an ounce in January’s record highs. Silver, which once touched nearly $120, has also entered a downward trend.

JPMorgan analysts attribute this wave of selling in gold and silver to rising interest rates, a strengthening dollar, and widespread profit-taking among retail and institutional investors. Fund flow data supports this: in the first three weeks of March, gold ETFs experienced nearly $11 billion in massive outflows, while silver ETFs, which had been accumulating since last summer, were fully liquidated. Meanwhile, Bitcoin funds continued to see net inflows during the same period.

Divergence Between Liquidity and Momentum, BTC Selling Pressure Eases

Institutional position data also shows divergence. According to CME futures open interest data, gold and silver exposures surged sharply from late 2025 to early 2026 but have since declined significantly as investors reduced their positions since January; in contrast, Bitcoin futures positions have remained relatively stable in recent weeks.

In terms of momentum signals, trend-following investors like CTAs have significantly cut their gold and silver exposures, with indicators dropping from overbought levels to below neutral, exacerbating recent price declines. Meanwhile, Bitcoin’s momentum is gradually recovering from oversold conditions toward neutral, suggesting selling pressure may be easing.

The report concludes that gold’s market breadth has now fallen behind Bitcoin’s, and silver’s liquidity has further weakened, with insufficient market depth amplifying recent sharp price swings.