06.02.202612:56 Forex Analysis & Reviews: Don't give in to panic: look deeper and wider

While the crypto market goes through another cycle of an aggressive plunge, JPMorgan said yesterday that Bitcoin is now more attractive than gold over the long term.

JPMorgan analysts believe Bitcoin's long-term edge over gold marks a new chapter in investment history. Historically, gold has been regarded as a reliable safe-haven asset that preserves capital in times of economic uncertainty. However, following recent months of large Bitcoin corrections and gold volatility, the picture may be shifting. The bank argues that the recent decline in Bitcoin's volatility relative to gold is a key indicator of structural change.

High volatility has long been the stumbling block for those who viewed Bitcoin as a reliable store of value. But when BTC's relative volatility falls, it signals market consolidation and an accumulation of energy for a subsequent rise. The current panic in crypto is likely a temporary phenomenon driven by short-term factors. Once investors resume viewing Bitcoin as a safe-haven asset comparable to gold, a significant re?rating could begin.

JPMorgan's calculations show that to reach parity with gold in private investment volume, Bitcoin would need to rise to about $266,000 to match roughly $8 trillion of private investment in gold. While analysts do not expect such a move this year, they stress that it is an achievable long?term target once negative sentiment dissipates. This thesis assumes Bitcoin will continue to demonstrate value as "digital gold."

The long-term outlook for Bitcoin also looks promising. JPMorgan expects that as institutional investors deepen their engagement with crypto and as regulatory frameworks become clearer, Bitcoin will re?establish a solid place in investors' portfolios. Reduced volatility, combined with Bitcoin's decentralized nature and capped supply, could make it an attractive alternative to traditional assets like gold.

With this statement JPMorgan is not just forecasting the future but actively shaping a new investment landscape in which digital assets play an increasingly important role.

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $68,900, which would open a direct path to $72,100 and then to $74,600. The farther target is around $77,300; breaking that level would signal attempts to restore the bull market. In case of a decline, buyers are expected at $64,300. A move back below that area could quickly push BTC toward $60,100. The far downside target is $56,100.

Ethereum

A clear hold above $2,017 opens a direct path to $2,159. The farther target is around $2,316; surpassing it would indicate strengthening bullish sentiment and renewed buyer interest. In case of a decline, buyers are expected at $1,861. A move back below that area could quickly push ETH toward $1,720. The far downside target is $1,563.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.